Growth in non-food bank credit recovered to 7.46 per cent year-on-year (y-o-y) during the fortnight ended September 29 from a six-month low of 4.3 per cent in the previous fortnight. The corresponding figure in the year-ago period was 12.55 per cent.
According to provisional data released by the Reserve Bank of India (RBI), outstanding loans to companies and individuals rose to Rs 79.62 lakh crore from Rs 77.28 lakh crore a fortnight ago.
The net corporate bonds outstanding, at the end of June, was Rs 24.81 lakh crore, up 20 per cent from Rs 20.63 lakh crore in June 2016, as per data released by Securities and Exchange Board of India (Sebi). Data from RBI showed that the net outstanding on commercial papers (CPs) stood at Rs 3.93 lakh crore as of September 30, up from Rs 3.49 lakh crore in the previous
Taken together with the outstandings on corporate bonds and CPs, the total outstanding credit in the system adds up to at least Rs 108.36 lakh crore, up 10.3 per cent from Rs 98.21 lakh crore in the comparable period last year. Outstandings on corporate bonds as at the end of September are not available yet.
Total bank credit rose 6.9 per cent y-o-y to Rs 80.1 lakh crore, as against a 3.82 per cent growth in the previous fortnight and 12.1 per cent in the year-ago period.
Aggregate deposits with the banking system grew 8.66 per cent y-o-y to Rs 109.68 lakh crore, up from Rs 107.07 lakh crore a fortnight ago. The credit-deposit (CD) ratio of the banking system, or the proportion of deposits deployed as loans, rose 35 bps from the fortnight ended September 15 to 73.02 per cent. This is the highest CD ratio clocked by the banking sector since demonetisation was announced on November 8, 2016. The increase in the ratio has come on the back of gradual improvement in credit deployment and a relatively slow growth in deposits during September. Deposits had been growing at an average of 11 per cent y-o-y for most of FY18. FE