Bank credit growth improves to 7.2% as on 10 April 2020

Deposits rises 9.5% as on 10 April 2020

The Scheduled commercial banks (SCBs) credit growth improved on sequential basis to 7.2% YoY to Rs 10339299 crore as on 10 April 2020, compared with 6.1% growth a fortnight ago. The credit growth has decelerated from 13.0% at end April 2019.

Non-food credit, accounting for 99.5% of the share of the total credit, recorded a growth of 7.0%, YoY, at Rs 10285226 crore as on 10 April 2020 as against a rise of 6.1% fortnight ago and 13.1% rise a year ago.

Food credit moved up 50.5% to Rs 54073 crore as on 10 April 2020.

The overall credit-deposit ratio eased on sequential basis to 75.4% as on 10 April 2020 from 76.4% a fortnight ago, while dipped from 77.1% in April 2019 with the faster growth in deposits.

Aggregate deposits growth of the scheduled banks increased 9.5% YoY at Rs 13714927 crore as on 10 April 2020, compared with 7.9% growth a fortnight ago and 9.7% rise a year ago. The time deposits showed an increase of 9.6% at Rs 12233275 crore, while the demand deposits moved up 8.3% to Rs 1481652 crore as on 10 April 2020.

The banks investment in government and other approved securities that qualify for treatment of statutory liquidity ratio jumped 14.1% YoY to Rs 3924509 crore as on 10 April 2020, showing accleration in growth from 9.1% increase a fortnight ago. The banks investment had gained 2.8% in April 2019. The investment-deposit ratio rose to 28.6% as on 10 April 2020, which is much higher above the Statutory Liquidity Ratio of 18.0%.

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