Bank credit growth eases to 12.71% as on 24 May 2019

Deposits rises 10.09% as on 24 May 2019

The Scheduled commercial banks (SCBs) credit growth moderated slightly to 12.71% YoY to Rs 96225.9 crore as on 24 May 2019, compared with 12.95% growth in April 2019. The credit growth was nearly steady from 12.79% at end May 2018.

Non-food credit, accounting for 99.32% of the share of the total credit, recorded a growth of 12.64%. YoY, at Rs 95568.7 billion as on 24 May 2019 as against a rise of 13.14% fortnight ago and 13.00% rise a year ago.

The overall credit-deposit ratio eased on sequential basis to 76.99% as on 24 May 2019 from 77.07% a fortnight ago, while remained higher from 75.20% in May 2018 with the faster growth in loans.

Aggregate deposits growth of the scheduled banks increased 10.09% YoY at Rs 124985.5 billion as on 24 May 2019, compared with 9.69% growth in April 2019 and 8.13% rise a year ago. The time deposits showed an increase of 9.84% at Rs 111853.5 billion, while the demand deposits also increased at improved pace of 12.25% to Rs 13131.9 billion as on 24 May 2019.

The banks investment in government and other approved securities that qualify for treatment of statutory liquidity ratio rose 4.3% YoY to Rs 35172.80 billion as on 24 May 2019, showing acceleration in growth from 2.8% increase in April 2019. The banks investment had improved 5.1% in May 2018. The investment-deposit ratio rose to six-month high of 28.1% as on 24 May 2019, which is much higher above the Statutory Liquidity Ratio of 19.5%.

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