Bank Credit growth Improves To 6.2% YOY In December 2020 From 5.8% In Previous Quarter

Bank credit growth (Y-o-Y) improved to 6.2% in December 2020 from 5.8% in the previous quarter but it remained lower when compared with 7.4% growth recorded a year ago; all population groups (i.e., rural, semi-urban, urban and metropolitan) recorded lower growth when compared to a year ago.

Growth (Y-o-Y) in credit by private sector banks decelerated considerably to 6.7% in December 2020 (13.1% a year ago), whereas that for public sector banks improved to 6.5% in December 2020 (3.7% in December 2019).

Aggregate deposits growth (Y-o-Y) of SCBs increased to 11.1% in December 2020 (10.0% a year ago); all population groups recorded double-digit growth.

Annual growth in current, savings and term deposits of SCBs stood at 13%, 15.8% and 8.2%, respectively, in December 2020; higher growth in current account and savings account (CASA) deposits resulted in their higher share of 42.8 per cent in total deposits (41.2% a year ago).

All-India credit-deposit (C-D) ratio improved marginally to 72.5% in December 2020 from 72% in the previous quarter; C-D ratio of metropolitan branches, which account for over half of the banking business in India, stood at 87.5%.

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