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Bank credit growth eases to 6.4% as on 14 February 2020

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Capital Market
Last Updated : Feb 27 2020 | 5:50 PM IST

Deposits growth moderates to 9.2% as on 14 February 2020

The Scheduled commercial banks (SCBs) credit growth moderated to 6.4% YoY to Rs 10041689 crore as on 14 February 2020, compared with 7.2% growth a fortnight ago. The credit growth has also decelerated from 14.7% at end February 2019.

Non-food credit, accounting for 99.3% of the share of the total credit, recorded a growth of 6.3%, YoY, at Rs 9968365 crore as on 14 February 2020 as against a rise of 7.1% fortnight ago and 14.6% rise a year ago.

Food credit moved up 18.8% to Rs 73324 crore as on 14 February 2020.

The overall credit-deposit ratio rose on sequential basis to 75.9% as on 14 February 2020 from 75.8% a fortnight ago, while eased from 78.1% in February 2019 with the higher growth in deposits.

Aggregate deposits growth of the scheduled banks increased 9.2% YoY at Rs 13235538 crore as on 14 February 2020, compared with 9.9% growth a fortnight ago and 10.0% rise a year ago.

The time deposits showed an increase of 9.6% at Rs 11872501 crore, while the demand deposits increased at slower pace of 5.8% to Rs 1363036 crore as on 14 February 2020.

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The banks investment in government and other approved securities that qualify for treatment of statutory liquidity ratio increased 12.7% YoY to Rs 3777945 crore as on 14 February 2020, showing acceleration in growth from 11.2% increase a fortnight ago. The banks investment had declined 1.2% in February 2019. The investment-deposit ratio rose on sequential basis to 28.5% as on 14 February 2020, which is much higher above the Statutory Liquidity Ratio of 18.25%.

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First Published: Feb 27 2020 | 5:23 PM IST

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