Credit growth for SBI & associates grows at a slower pace compared to peers

Grew at 4.6% as compared to 11.3% in the same period a year ago

Bank credit for State Bank of India (SBI), the country’s largest private sector lender, and its associates grew at a slower pace compared to peers.

According to Reserve Bank of India (RBI) data, gross bank credit in April-June for SBI and its associates grew 4.6 per cent compared to 11.3 per cent, in the year-ago period.

Overall bank credit in the system grew at 8.6 per cent, slower than last year’s 12.9 per cent. RBI said the fall in growth was broad-based and across all population groups.

Foreign and private banks managed to outpace the overall growth in the credit system at 13.3 per cent and 17.9 per cent, respectively. However, on a sequential basis, private banks’ credit growth tapered off a little from 18.6 per cent in the quarter ended March.

Deposits in the first quarter of FY16 also grew at 10.6 per cent compared to 11.9 per cent a year ago.

“SBI and associates, regional rural banks and private sector banks could maintain accelerated growth in aggregate deposits in June 2015 over their levels a year ago. In the case of credit, private sector banks and foreign banks improved their growth rate in June 2015 over their levels a year ago. However, credit growth for the private sector banks was lower in June 2015 than in the preceding quarter,” RBI said in a notification.

However, deposits for SBI and its associates grew at a faster pace at 13.6 per cent; for private banks, the growth was recorded at 17.2 per cent.