Bank credit increased to 17.2% in September
On Monday, the Reserve Bank of India (RBI) In its quarterly figures on deposits and credit noted that bank credit increased to 17.2% on an annual basis in September from 14.2% a quarter earlier.
Image Credit: PIB
According to figures from the RBI, the growth of bank credit was 7.0% a year ago. The credit growth remained broad-based with all population and bank groups recording double digit annual growth.
“Aggregate deposits growth (y-o-y), which remained in the close range of 9.5-10.2% since June 2021, stood at 9.8% in September 2022; since December 2020, bank branches in metropolitan centers have been recording higher annual growth than those in rural, semi-urban and urban areas,” stated the press release.
In terms of deposit mobilization, private-sector banks have been exceeding public-sector banks, foreign banks, and local rural banks.
According to the data, deposit growth increased to 10.2% in September 2022 from 6.4% a year earlier, while the growth of current and savings deposits moderated to 8.8% and 9.4% from 17.5% and 14.54%, respectively, a year earlier.
Savings deposits’ percentage of total deposits, which rose from 32.4% in June 2019 to a high of 35.2% in June 2022, slightly declined to 34.7% in the most recent quarter.
The credit-deposit (C-D) ratio for all of India climbed further to 74.8% in September 2022 from 73.5% a quarter earlier and 70.0% a year earlier; the C-D ratio for metropolitan bank branches, which controls the majority of the banking industry, was significantly higher at 87.6% in September 2022 (82.8%).