Bank credit growth loses momentum, up 13.24%

Bank credit rose by 13.24 percent to Rs 97.67 lakh crore, while deposits grew by 10.03 percent to Rs 125.72 lakh crore in the fortnight to March 29, according to RBI data released Thursday. In the year-ago fortnight, deposits were at Rs 114.26 lakh crore and advances at Rs 86.25 lakh crore.

In the previous fortnight to March 15, credit demand had grown by 14.46 per cent to Rs 95.53 lakh crore while deposits increased by 10.03 per cent to Rs 122.26 lakh crore. On a year-on-year basis, non-food bank credit increased by 13.2 percent in February 2019 as compared with an increase of 9.8 percent in the year-ago period.

Loans to the services sector almost doubled with a 23.7 percent growht in February compared to 14.2 percent in the same month last year. Advances to agriculture and allied activities increased by 7.5 percent in February compared to an increase of 9 percent in February 2018.

Credit to industry rose by 5.6 percent in February, up from an increase of 1 percent in February last year. Credit growth to infrastructure, chemical and chemical products, and all engineering, accelerated. However, credit growth to basic metal & metal products, textiles, and food processing decelerated/contracted.

Personal loans rose 16.7 percent in February down from 20.4 percent in February 2018. Pti HV BEN BEN.