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Credit in the banking system inched up in double digits at the end of the fortnight ended May 1. Bank credit grew 10.51 per cent at the end of May 1, as compared to the year-ago period.
Credit demand in the banking system has continued to remain sluggish and credit growth, too. Reflecting an economic slowdown in the country, the pace of growth in bank credit slowed sharply to 8.6 per cent in 2014-15 from 14.3 per cent in 2013-14.
According to the Reserve Bank of India, deposits at the end of May 1 grew 12.31 per cent from the year-ago period.
Bankers said credit growth continued to remain under pressure due to a slowdown in the corporate segment of the business. Sector players said activity in the corporate side remained largely limited to working capital loans.
On a year-on-year basis, bank credit for the period reached Rs 66,79,949 crore from Rs 60,44,606 crore a year ago. In the same period, deposits reached Rs 88,12,687 crore from Rs 78,46,636 crore a year ago.
