Bank credit up by 9.75%

Credit in the banking system continues to grow at a tepid pace. Bank credit grew 9.75 per cent at the end of June 12 as compared to the same period a year ago.

Bank credit has continued to grow in single digits or low double digits for almost a year. In 2014-15, growth was the lowest in 17 years at 9.5 per cent ,whereas deposits in the system inched up only 11.4 per cent.

According to the Reserve Bank of India, deposits at the end of June 12 grew 11.7 per cent, as compared to the same period a year earlier.

Credit has been growing at a slow pace due to slow on-ground economic activity.

On a year-on-year basis, at the end of June 12 , bank credit grew to Rs 66,53,840 crore from Rs 60, 62,437 crore a year ago.

In the same period deposits grew to Rs 87,66,463 crore from Rs 78, 48,187 crore a year ago.