Bank credit, deposit growth lose momentum; non-food credit increases 11.9%

Non-food credit increased 11.9% in April from 10.7 percent in April 2018

Both bank credit and deposits slowed to 9.92 percent and 12.31 percent at Rs 96.52 lakh crore and Rs 125.40 lakh crore, respectively, for the fortnight ending June 7, according to the RBI data.

In the year-ago fortnight, bank credit was at Rs 85.94 lakh crore while deposits were at Rs 114.08 lakh crore. In the previous fortnight ending May 24, advances grew 12.70 percent to Rs 96.22 lakh crore and deposits increased 10.09 percent to Rs 124.98 lakh crore.

Non-food credit increased 11.9 percent in April from 10.7 percent in April 2018.

Loans to agriculture and allied activities rose 7.9 percent in April compared to 5.9 percent growth in the same month of 2018.

Advances to the services sector expanded 16.8 percent compared to an increase of 20.7 percent in April 2018.Personal loans growth slowed to 15.7 percent from 19.1 percent during the reporting month.

Credit to the industry rose 6.9 percent in April as against a meagre 1 percent growth in the year-ago period.