Banks' credit grows 6.13%, deposits 9% in the second half of Feb: RBI data

Growth in advances to the services sector decelerated to 8.9% from 23.9% in January 2019

Banks credit grew at 6.13 per cent to Rs 101.04 trillion while deposits expanded by 9 per cent to Rs 133.31 trillion in the fortnight to February 28, according to the latest Reserve Bank data.

In the year-ago fortnight ended March 1, 2019, banks advances were at Rs 95.20 trillion while deposits stood at Rs 122.30 trillion.

In the previous fortnight which ended on February 14, 2020, bank credit had grown by 6.36 per cent to Rs 100.41 trillion, while deposits rose by9.2 per cent to Rs 132.35 trillion.

In January 2020, bank credit growth declined to 8.5 per cent as against a growth of 13.5 per cent year-ago, led by a sharp slowdown in loans to the services sector.

 

Growth in advances to the services sector decelerated to 8.9 per cent from 23.9 per cent in January 2019. During the month, personal loans segment grew by 16.9 per cent, unchanged from the year-ago period.

Within personal loans, credit to housing segment grew by 17.5 per cent from 18.4 per cent, while education loan showed a negative growth of 3.1 per cent as against a negative growth of 2.3 per cent in January 2019, the RBI data showed.

Advances growth to agriculture and allied activities contracted to 6.5 per cent from 7.6 per cent rise last year. Credit growth to industry decelerated to 2.5 per cent from 5.2 per cent.