Bank credit growth eases to 6.1% as on 28 February 2020

Deposits rise at slower pace of 9.0% as on 28 February 2020

The Scheduled commercial banks (SCBs) credit growth moderated to 6.1% YoY to Rs 10104980 crore as on 28 February 2020, compared with 6.4% growth a fortnight ago. The credit growth has also decelerated from 14.7% at end February 2019.

Non-food credit, accounting for 99.4% of the share of the total credit, recorded a growth of 6.1%, YoY, at Rs 10039383 crore as on 28 February 2020 as against a rise of 6.3% fortnight ago and 14.6% rise a year ago.

Food credit moved up 17.9% to Rs 65596 crore as on 28 February 2020.

The overall credit-deposit ratio eased on sequential basis to 75.8% as on 28 February 2020 from 75.9% a fortnight ago, while also declined from 78.1% in February 2019 with the faster growth in deposits.

Aggregate deposits growth of the scheduled banks increased 9.0% YoY at Rs 13331705 crore as on 28 February 2020, compared with 9.1% growth a fortnight ago and 10.0% rise a year ago.

The time deposits showed an increase of 8.6% at Rs 11866235 crore, while the demand deposits increased 12.6% to Rs 1465470 crore as on 28 February 2020.

The banks investment in government and other approved securities that qualify for treatment of statutory liquidity ratio increased 10.6% YoY to Rs 3769042 crore as on 28 February 2020, compared with 12.8% increase a fortnight ago. The banks investment had declined 1.2% in February 2019. The investment-deposit ratio stood at 28.3% as on 28 February 2020, which is much higher above the Statutory Liquidity Ratio of 18.25%.

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