Bank credit growth eases to 11.6% as on 16 August 2019

Deposits growth steady at 10.2% as on 16 August 2019

The Scheduled commercial banks (SCBs) credit growth moderated to 11.6% YoY to Rs 96829.7 billion as on 16 August 2019, compared with 12.2% growth a fortnight ago. The credit growth has also decelerated from 14.2% at end August2018.

Non-food credit, accounting for 99.33% of the share of the total credit, recorded a growth of 11.59% , YoY, at Rs 96177.5 billion as on 16 August 2019 as against a rise of 12.09% fortnight ago and 12.56% rise a year ago.

The overall credit-deposit ratio rose on sequential basis to 76.4% as on 16 August 2019 from 76.3% a fortnight ago, while moved up from 75.4% in August 2018 with the faster growth in loans.

Aggregate deposits growth of the scheduled banks increased 10.2% YoY at Rs 126802.0 billion as on 16 August 2019, compared with 10.1% growth a fortnight ago and 9.9% rise a year ago. The time deposits showed an increase of 10.0% at Rs 113642.6 billion, while the demand deposits also increased 11.5% to Rs 13159.2 billion as on 16 August 2019.

The banks investment in government and other approved securities that qualify for treatment of statutory liquidity ratio rose mere 1.3% YoY to Rs 35540.68 billion as on 16 August 2019, showing deceleration in growth from 1.6% increase a fortnight ago. The banks investment had increased 6.5% in August 2018. The investment-deposit ratio stood at 28.0% as on 16 August 2019, which is much higher above the Statutory Liquidity Ratio of 18.75%.

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