Bank credit up 5%, deposits clock 12% growth

Bank credit grew 5.26 per cent to Rs. 102.24 trillion while deposits rose 11.98 per cent to Rs. 142.48 trillion in the fortnight ended September 11, according to the RBI data.

In the fortnight ended September 13, 2019, bank credit was at Rs. 97.13 trillion and deposits at Rs. 127.22 trillion.

In the previous fortnight ended August 28, 2020, bank credit had grown by 5.49 per cent to Rs. 102.11 trillion while deposits were up 10.92 per cent to Rs. 141.76 trillion.

On a year-on-year (y-o-y) basis, non-food bank credit grew at 6.7 per cent in July as against a growth of 11.4 per cent in the same month of the last year, according to the data on sectoral deployment of bank credit for July 2020, released recently by the RBI.

Growth in loans to industry slowed to 0.8 per cent in July as compared with 6.1 per cent growth in July 2019, the data showed.

Advances to agriculture and allied activities registered a growth of 5.4 per cent in the reporting month as compared with a growth of 6.8 per cent last year in the same period.

Credit to the services sector continued to grow at a robust, albeit decelerated, rate of 10.1 per cent in July 2020 as against 15.2 per cent growth.

Personal loans continued to perform well registering a growth of 11.2 per cent as compared with 17 per cent growth in July 2019. Within this sector, vehicle loans registered accelerated growth of 8.1 per cent in July 2020 as compared with the growth of 4.9 per cent in the corresponding month of the previous year, according to the data.