Bank credit growth eases to 8.0% as on 22 November 2019

Deposits rises 9.7% as on 22 November 2019

The Scheduled commercial banks (SCBs) credit growth moderated to 8.0% YoY to Rs 9860916 crore as on 22 November 2019, compared with 9.0% growth a fortnight ago. The credit growth has more than halved from 16.2% at end November 2018.

Non-food credit, accounting for 99.1% of the share of the total credit, recorded a growth of 7.8%, YoY, at Rs 9769612 crore as on 22 November 2019 as against a rise of 8.8% fortnight ago and 16.3% rise a year ago.

The overall credit-deposit ratio rose on sequential basis to 76.1% as on 22 November 2019 from 75.8% a fortnight ago, while eased from 77.1% in November 2018 with the faster growth in loans.

Aggregate deposits growth of the scheduled banks increased 9.7% YoY at Rs 12958755 crore as on 22 November 2019, compared with 10.4% growth a fortnight ago and 10.8% rise a year ago.

The time deposits showed an increase of 9.8% at Rs 11627020 crore, while the demand deposits moved up 8.6% to Rs 1331734 crore as on 22 November 2019.

The banks investment in government and other approved securities that qualify for treatment of statutory liquidity ratio rose mere 8.5% YoY to Rs 3715987 crore as on 22 November 2019, showing deceleration in growth from 9.2% increase a fortnight ago. The banks investment had increased 2.0% in November 2018.

The investment-deposit ratio stood at 28.7% as on 22 November 2019, which is much higher above the Statutory Liquidity Ratio of 18.75%.

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