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RBI Says Bank Credit Continues To Decelerate

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Capital Market
Last Updated : Jul 16 2020 | 1:16 PM IST

The Reserve Bank Of India (RBI) stated yesterday that India's bank credit growth (Y-o-Y) continued to decelerate and stood at 6.3% in March 2020; bank branches in rural areas, however, maintained double digit growth. The share of industrial credit in total bank credit declined to 31.5% in March 2020 (33.1% a year ago), as it recorded a meagre 0.9% growth (Y-o-Y) in March 2020.

Overall credit expansion has been supported by a robust growth in personal loans in the recent period: the share of individuals in total bank credit has increased to 40.1% in March 2020 (37.4% a year ago and 30.8% five years ago) whereas that of the private corporate sector has declined. Within individuals, the share of female borrowers has been consistently on the rise.

All bank groups recorded moderation in credit growth during 2019-20 though private sector banks continued to lead the growth. The overall weighted average lending rate (WALR) on outstanding credit declined by 17 basis points during the quarter ended March 2020

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First Published: Jul 16 2020 | 12:42 PM IST

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