Credit loans up by 27% in Q3, deposits by 18%: RBI

Credit loans dispensed by commercial banks increased by 27% during October-December period last fiscal, suggesting heightened business activity in the economy.

The credit offtake at 26.6% during the third quarter of 2010-11 was far higher that 11.2% growth reported in the comparable quarter of the previous fiscal, the Reserve Bank said in its report on 'Quarterly Statistics on Deposits and Credit of scheduled Commercial Banks -- December 2010'.

Meanwhile, the aggregate deposits in banks grew by 18.1% in the October-December period of 2010-11, as interest rates fetched negative returns due to high inflation.

The aggregate deposits growth in the year-ago period was 26.6%.

Total deposits at the end of December stood at Rs 49,54,727 crore, while credit offtake was Rs 37,78,512 crore.

Nationalised Banks, as a group accounted for 52.2% of the aggregate deposit. State Bank of India and its associate accounted for 22.1% of aggregate deposit.

The share of new private sector banks, foreign banks, old private sector banks and regional banks in aggregate deposits was 13.3%, 4.8% and 3% respectively, the RBI said.

Meanwhile, in the case of gross bank credit, nationalised banks held 51.6% of the total bank credit followed by State Bank of India and its associates at 22.7% and new private banks at 13.7%.

Foreign banks at 5.1% and old private sector bank at 4.5% and regional rural banks 2.5% had relatively lower shares in the total bank credit, the RBI added.