 "Bank credit down by 2.5% in April-June quarter")
Credit in the banking system has declined by 2.5 per cent in the April-June quarter, show the Reserve Bank of India (RBI) data. According to the data, bank credit was at Rs 68,30,965 crore on April 3 which shrunk to Rs 66,59,336 crore on June 26. In the same period, deposits also declined by 1.26 per cent.
Bankers say the credit growth in the first quarter is usually tepid on account of low economic activity. In the previous financial year, credit growth was the lowest in 17 years at 9.5 per cent, whereas deposits in the system rose 11.4 per cent. However, on a year-on-year basis, bank credit grew 9.2 per cent at the end of June.
In the same period deposits also inched up by 11.3 per cent.
Bankers say the credit growth in the first quarter is usually tepid on account of low economic activity. In the previous financial year, credit growth was the lowest in 17 years at 9.5 per cent, whereas deposits in the system rose 11.4 per cent. However, on a year-on-year basis, bank credit grew 9.2 per cent at the end of June.
In the same period deposits also inched up by 11.3 per cent.