Bank credit growth moderates to 5.5% as on 14 August 2020

Deposits growth steady at 11.0% as on 14 August 2020

The Scheduled commercial banks (SCBs) credit growth eased on sequential basis to 5.5% YoY to Rs 10219729 crore as on 14 August 2020, compared with 5.7% growth a fortnight ago. The credit growth has also decelerated from 10.2% at end July 2019.

Non-food credit, accounting for 99.3% of the share of the total credit, recorded a growth of 5.5%, YoY, at Rs 10146647 crore as on 14 August 2020 as against a rise of 5.6% fortnight ago and 10.1% rise a year ago.

Food credit moved up 12.1% to Rs 73082 crore as on 14 August 2020.

The overall credit-deposit ratio was steady on sequential basis to 72.6% as on 14 August 2020 from 72.6% a fortnight ago, while eased from 75.7% in July 2019 with the faster growth in deposits.

Aggregate deposits growth of the scheduled banks increased 11.0% YoY at Rs 14080421 crore as on 14 August 2020, compared with 11.1% growth a fortnight ago and 9.7% rise a year ago. The time deposits showed an increase of 11.0% at Rs 12616824 crore, while the demand deposits increased 11.2% to Rs 1463596 crore as on 14 August 2020.

The banks investment in government and other approved securities that qualify for treatment of statutory liquidity ratio jumped 21.4% YoY to Rs 4313614 crore as on 14 August 2020, showing acceleration in growth from 20.8% increase a fortnight ago. The banks investment had rose 2.1% in July 2019. The investment-deposit ratio declined to 30.6% as on 14 August 2020, which is much higher above the Statutory Liquidity Ratio of 18.0%.

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