Bank credit growth eases to two-year low of 8.79% as on 27 September 2019

Deposits rises 9.38% as on 27 September 2019

The Scheduled commercial banks (SCBs) credit growth moderated to single digit and 24-months low of 8.79% YoY to Rs 9771310 crore as on 27 September 2019, compared with 10.38% growth a fortnight ago. The credit growth has also decelerated from 12.50% at end September2018.

Non-food credit, accounting for 99.39% of the share of the total credit, recorded a growth of 8.70%, YoY, at Rs 9711225 crore as on 27 September 2019 as against a rise of 10.27% fortnight ago and 12.56% rise a year ago.

The overall credit-deposit ratio eased on sequential basis to 75.71% as on 27 September 2019 from 76.33% a fortnight ago, while also declined from 76.12% in September 2018 with the slower growth in loans compared with deposits.

Aggregate deposits growth of the scheduled banks increased 9.38% YoY at Rs 12906766 crore as on 27 September 2019, compared with 10.02% growth a fortnight ago and 8.08% rise a year ago. The time deposits showed an increase of 9.61% at Rs 11497902 crore, while the demand deposits moved up at slower pace of 7.58% to Rs 1408864 crore as on 27 September 2019.

The banks investment in government and other approved securities that qualify for treatment of statutory liquidity ratio rose 7.1% YoY to Rs 3689393 crore as on 27 September 2019, showing acceleration in growth from 3.2% increase a fortnight ago. The banks investment had increased 3.7% in September 2018. The investment-deposit ratio rose to 28.6% as on 27 September 2019, which is much higher above the Statutory Liquidity Ratio of 18.75%.

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