Bank credit grows 6.2 pc in December quarter: RBI

Bank credit growth on a year-on-year basis improved to 6.2 per cent in the December quarter from 5.8 per cent in the previous three-month period, RBI data showed. Aggregate deposits growth y-o-y of scheduled commercial banks increased to 11.1 per cent in December 2020 quarter as against 10 per cent a year ago.

Bank credit growth on a year-on-year basis improved to 6.2 per cent in the December quarter from 5.8 per cent in the previous three-month period, RBI data showed. However, credit growth in the third quarter of the current fiscal was lower when compared to 7.4 per cent growth recorded a year ago. Growth in credit by private sector banks decelerated considerably to 6.7 per cent in the quarter ended December 2020 as against 13.1 per cent a year ago. Advances growth in public sector banks improved to 6.5 per cent in December 2020 quarter as against 3.7 per cent in the same period of 2019, the data showed. The RBI on Thursday released the 'Quarterly Basic Statistical Returns (BSR)-1: Outstanding Credit of Scheduled Commercial Banks (SCBs), December 2020'. Aggregate deposits growth (y-o-y) of scheduled commercial banks increased to 11.1 per cent in December 2020 quarter as against 10 per cent a year ago. Annual growth in current, savings and term deposits of banks stood at 13 per cent, 15.8 per cent and 8.2 per cent, respectively, the RBI data showed.

Higher growth in current account and savings account (CASA) deposits resulted in their higher share of 42.8 per cent in total deposits as against 41.2 per cent a year ago. All-India credit-deposit (C-D) ratio improved marginally to 72.5 per cent in the reporting quarter from 72 per cent in the previous quarter, the data showed.