Bank credit jumps 12.44%, deposits increase by 8.15%, says RBI data

Bank credit grew by 12.44 per cent to Rs 86131.64 billion in the fortnight to July 20, according to the RBI data.

In the year-ago period, bank credit had stood at Rs 76598.98 billion.

Growth in advances during the reporting period was marginally lower than the increase registered in the fortnight to July 6, when loans increased by 12.78 per cent to Rs 86600.69 billion.

During the reporting fortnight, deposits increased by 8.15 per cent to Rs 114381.21 billion from Rs 105756.15 billion a year ago, according to the data.

Deposit the growth, the pace was slower than that in the last fortnight ended July 6, 2018, when they had risen 8.33 per cent to Rs 114857.68 billion.

 

In June 2018, the non-food bank credit rose 11.1 per cent as against a rise of 4.8 per cent in the same month last year.

Loans to agriculture and allied activities slowed 6.5 per cent in June, compared to an increase of 7.5 per cent in June 2017.

Personal loan segment saw a growth of 17.9 per cent in June, up from an increase of 14.1 per cent last June.

During the reporting month, advances to the industry rose 0.9 per cent compared to a contraction of 1.1 per cent in June 2017.

"Credit to major sub-sectors such as textiles, all engineering, food processing, chemical and chemical products, and cement and cement products accelerated," the apex bank said.

However, loans to basic metal and metal products, construction and gems and jewellery contracted in June 2018.

The services sector witnessed a major increase in loans to the tune of 23.3 per cent compared to an increase of 4.7 per cent in June 2017.