Bank credit up 13.24% , deposits up 10% in FY19: RBI
Signalling credit offtake, Reserve Bank of India data have shown banks have ended the 2018-2019 with record double digit disbursals for the second year consecutively after the under-5 per cent in FY17, which was the lowest in five decades.
 
According to the RBI data released on Thursday, bank credit rose 13.24 per cent to Rs 97.67 lakh crore for the fortnight to March 29, while deposits grew by 10.03 per cent to Rs 125.72 lakh crore during the same period.
 
This is the second consecutive double-digits credit growth after the same had declined to 4.54 per cent in FY17 at Rs 78.41 lakh crore, which was the lowest since 1963.
 
In the year-ago fortnight, deposits were at Rs 114.26 lakh crore and advances at Rs 86.25 lakh crore. In FY17, aggregate deposits in the banking system grew a mere 6.7 per cent in 2017-18, while credit grew still lower at 4.54 per cent, the lowest since fiscal 1963. 
 
Bank deposit growth had declined to a five-decade low in year to March 2017 as under the fading impact of demonetisation.
 
During November-December 2016, banks received Rs 15.28 lakh crore as people deposited high denomination currency notes withdrawn from circulation on November 8. This led to aggregate deposits in the fiscal ended March 2017 to Rs 108 lakh crore. 
 
In the previous fortnight to March 15, 2019 credit demand had grown by 14.46 per cent to Rs 95.53 lakh crore while deposits increased by 10.03 per cent to Rs 122.26 lakh crore, showed RBI data.
 
On a year-on-year basis, non-food bank credit increased by 13.2 per cent in February 2019 as compared with an increase of 9.8 per cent in the year-ago period.
 
Loans to the services sector almost doubled with a 23.7 per cent growth in February compared to 14.2 per cent in the same month last year.
 
Advances to agriculture and allied activities increased by 7.5 per cent in February compared to an increase of 9 per cent in February 2018. 
 
Credit to the industry rose by 5.6 per cent in February, up from an increase of 1 per cent in February 2018.
 
Credit to the infrastructure, chemical and chemical products, and all engineering sectors accelerated. However, credit growth to basic metal & metal products, textiles, and food processing decelerated/contracted.
 
Personal loans rose 16.7 per cent in February down from 20.4 per cent in February 2018.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Standard Chartered Pays Over USD1 billion to US, UK Authorities to Settle Iran Transfer Cases
Standard Chartered PLC says it has agreed to pay USD947 million as monetary penalty to US agencies and other 102 million pound to UK Financial Conduct Authority (FCA) to settle cases related with money transfer to Iran during the sanction period. 
 
In a statement StanChart says, "The Group accepts full responsibility for the violations and control deficiencies outlined in the resolution documents, the vast majority of which predated 2012 and none of which occurred after 2014. These violations include the actions of two former junior employees, who were aware of certain customers' Iranian connections and conspired with them to break the law, deceive the group and violate its policies."
 
The lender says it has already set aside $900 million during fourth quarter of 2018 and will take further charge of $190 million in first quarter of 2019.
 
The settlement follows investigation by the US prosecutors including Department of Justice (DOJ), the Office of the District Attorney for New York County, the New York State Department of Financial Services (DFS), the Board of Governors of the Federal Reserve System and the Treasury's Office of Foreign Assets Control and UK's FCA, which found the bank had processed transactions from Iranian companies and individuals through its Dubai branch. 
 
Earlier in 2012 also, StanChart bought off $667 million in legal proceedings and had promised to tighten controls on transactions. 

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Naresh Goyal pledges his 26% stake in Jet Airways for loans from PNB
Naresh Goyal, founder of the now cash strapped Jet Airways, has pledged 26.01 per cent stake in Jet as security for loans from the Punjab National Bank (PNB).
 
The company told in a BSE filing on Thursday that Goyal had pledged 2.95 crore shares or 26.01 per cent of his stake in Jet with the PNB.
 
Goyal quit last month as the Chairman of Jet as part of a SBI-led banking consortium's debt resolution plan. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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