MUMBAI: Bank credit growth decelerated to 5.8 per cent in the September quarter from 8.9 per cent in the year-ago period, according to the RBI data.
Aggregate deposits of banks rose 11 per cent year-on-year in the July-September period as compared to 10.1 per cent growth a year ago, according to the 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks (SCBs), September 2020' - released by the Reserve Bank of India.
The deceleration in bank credit growth was seen across all the population groups – rural (11.2 per cent vs 14.8 per cent), semi-urban (9.4 per cent vs 12.3 per cent), urban (8.7 per cent vs 9.9 per cent) and metropolitan (3.6 per cent vs 7.2 per cent), the data showed.
Annual growth (y-o-y) in credit by private sector banks moderated significantly to 6.9 per cent in September 2020 from 14.4 per cent a year ago, whereas it increased marginally for public sector banks to 5.7 per cent from 5.2 per cent over the same period last year, it said.
The share of current account and saving account (CASA) in total deposits has been gradually increasing. It stood at 42.3 per cent in September 2020 compared to 41.2 per cent a year ago and 40.8 per cent three years ago, the data showed.
As deposit growth exceeded credit growth, the all-India credit-deposit (C-D) ratio declined to 72 per cent in September 2020 from 73.1 per cent in the previous quarter.
C-D ratio for metropolitan branches, which have a dominant share in bank deposits and credit, stood at 88.4 per cent in September 2020 (90.9 per cent a quarter ago). The ratio for Tamil Nadu, Andhra Pradesh and Chandigarh remained above 100 per cent, the data showed.
Source:-timesofindia.indiatimes.com