Bank credit continues to trail deposit growth
Moneylife Digital Team 19 February 2015

Most of the banks are seeing muted loan growth this fiscal as the economy is yet to pick up

 

Indian commercial banks’ credit grew 10.38% to Rs64.42 lakh crore in the fortnight to 6th February, shows data from the Reserve Bank of India (RBI).
 
The advances were at Rs58.36 lakh crore in the same period last year.
 
Most of the banks are seeing muted loan growth this fiscal as the economy is yet to pick up.
 
Last week, State Bank of India (SBI) said it expected credit growth to be at 10% in FY15, while the second largest lender Bank of Baroda is looking at a loan expansion of 11%-12% in the current fiscal.
 
According to the data, bank deposits rose 11.77% to Rs84.62 lakh crore in the period under review as against Rs75.71 lakh crore a year-ago.
 
Demand deposits grew 11.61% to Rs7.58 lakh crore from Rs6.79 lakh crore in the same period last year.
 
In the reporting period, time deposits were up 11.79% to Rs77.05 lakh crore as against Rs68.92 lakh crore last year, the data showed. 
 
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