Bank credit grows by 13.24%, deposits up 10.03% in FY19https://indianexpress.com/article/business/banking-and-finance/bank-credit-grows-by-13-24-deposits-up-10-03-in-fy19-5671498/

Bank credit grows by 13.24%, deposits up 10.03% in FY19

According to data released by the Reserve Bank of India on Thursday, bank credit rose 13.24 per cent to Rs 97.67 lakh crore for the fortnight to March 29, 2019 from Rs 86.25 lakh crore in the same period last year.

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Deposits grew by 10.03 per cent to Rs 125.72 lakh crore during the same period as against Rs 114.26 lakh crore in March 2018. (Express Photo by Pradip Das/File)

With credit demand picking up, banks closed fiscal 2019 with loan offtake crossing the double digits for the second year in row.

According to data released by the Reserve Bank of India on Thursday, bank credit rose 13.24 per cent to Rs 97.67 lakh crore for the fortnight to March 29, 2019 from Rs 86.25 lakh crore in the same period last year.

Deposits grew by 10.03 per cent to Rs 125.72 lakh crore during the same period as against Rs 114.26 lakh crore in March 2018.

Bank credit had picked up by 10.31 per cent during the fiscal ended March 2018. This is the second consecutive double-digit credit growth after the credit growth had declined to 5 per cent in FY17 at Rs 78.41 lakh crore, which was the lowest since 1963.

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In the year-ago fortnight, deposits were at Rs 114.26 lakh crore and advances at Rs 86.25 lakh crore, according to the RBI data.

In FY17, aggregate deposits in the banking system grew a mere 6.7 per cent, while credit grew at a lower rate.

During November-December 2016, banks received a whopping Rs 15.28 lakh crore as people deposited high denomination currency notes that were withdrawn from circulation on November 8. As a result, aggregate deposits in the fiscal ended March 2017 grew 15.8 per cent 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 rose by 10.03 per cent to Rs 122.26 lakh crore, stated the RBI data.

On a year-on-year basis, non-food bank credit increased by 13.2 per cent in February 2019, as against 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 a rise 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 and 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.