Bank credit growth loses momentum, up 13.24% to Rs 97.67 trillion

Bank credit rose by 13.24 per cent to Rs 97.67 trillion, while deposits grew by 10.03 per cent to Rs 125.72 trillion in the fortnight to March 29, according to RBI data released Thursday.

In the year-ago fortnight, deposits were at Rs 114.26 trillion and advances at Rs 86.25 trillion.

In the previous fortnight to March 15, credit demand had grown by 14.46 per cent to Rs 95.53 trillion while deposits increased by 10.03 per cent to Rs 122.26 trillion.

On a year-on-year basis, non-food bank credit increased by 13.2 per cent in February 2019 as compared with 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 growht 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 an increase of 9 per cent in February 2018.

Credit to industry rose by 5.6 per cent in February, up from an increase of 1 per cent in February last year.

Credit growth to infrastructure, chemical and chemical products, and all engineering, accelerated. However, credit growth to basic metal & metal products, textiles, and food processing decelerated/contracted.

Personal loans rose 16.7 percent in February down from 20.4 percent in February 2018.