Bank credit growth eases to 6.1% in 2019-20 from 13.4% in 2018-19

Deposits growth moderates to 7.9% as on 27 March 2020

The Scheduled commercial banks (SCBs) credit growth was steady at 6.1% YoY to Rs 10371913 crore as on 27 March 2020 over a year ago, compared with 6.1% growth a fortnight ago. The credit growth has decelerated from 13.3% at end March 2019. Thus, the credit growth has more than halved in 2019-20 from 2018-19.

Non-food credit, accounting for 99.5% of the share of the total credit, recorded a growth of 6.1%, YoY, at Rs 10320149 crore as on 27 March 2020 as against a rise of 6.1% fortnight ago and 13.4% rise a year ago.

Food credit moved up 24.4% to Rs 51764 crore as on 27 March 2020.

The overall credit-deposit ratio rose on sequential basis to 76.4% as on 27 March 2020 from 76.0% a fortnight ago, while eased from 77.7% in March 2019 with the faster growth in deposits.

Aggregate deposits growth of the scheduled banks increased 7.9% YoY at Rs 13571033 crore as on 27 March 2020, compared with 9.1% growth a fortnight ago and 10.0% rise a year ago.

The time deposits showed an increase of 8.1% at Rs 11954063 crore, while the demand deposits increased at slower pace of 7.0% to Rs 1616970 crore as on 27 March 2020.

The banks investment in government and other approved securities that qualify for treatment of statutory liquidity ratio jumped 9.0% YoY to Rs 3684743 crore as on 27 March 2020, compared with 11.6% increase a fortnight ago. The banks investment growth has accelerated from 1.9% rise in March 2019.

The investment-deposit ratio declined to 27.2% as on 27 March 2020, which is much higher above the Statutory Liquidity Ratio of 18.0%.

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