Bank credit grows 6.18%, deposits 11%: RBI data

Bank credit and deposits grew 6.18 per cent and 11 per cent to Rs 102.45 lakh crore and Rs 138.67 lakh crore, respectively, in the fortnight ended June 19, according to the RBI. In the fortnight ended June 21, 2019, bank credit had stood at Rs 96.48 lakh crore and deposits at Rs 124.92 lakh crore.

In the previous fortnight that ended on June 5 this year, advances had grown 6.24 per cent and deposits by 11.28 per cent.

Rating agency Crisil in a recent report said bank credit growth is likely to nosedive to a multi-decadal low of 0-1 per cent in 2020-21 as economic activity is sharply impacted by the COVID-19 pandemic.

For May, the non-food credit growth decelerated to 6.8 per cent year-on-year from 11.4 per cent in the corresponding period of the previous year, RBI data had shown.

The outstanding incremental non-food credit stood at Rs 90.3 lakh crore as of May 22, 2020, against Rs 84.51 lakh crore on May 24, 2019.

Bank loan growth to industry decelerated to 1.7 per cent in May from 6.4 per cent in the corresponding month last year.

Loan growth to the services sector slowed down to 11.2 per cent in May, compared with 14.8 per cent a year ago.

Personal loans growth decelerated to 10.6 per cent in May 2020, against 16.9 per cent in May 2019, RBI data showed.