Bank credit growth steady at 6.1% as on 03 July 2020

Deposits growth flat at 11.0% as on 03 July 2020

The Scheduled commercial banks (SCBs) credit growth eased on sequential basis to 6.1% YoY to Rs 10291611 crore as on 03 July 2020, compared with 6.2% growth a fortnight ago. The credit growth has also decelerated from 12.1% at end July 2019.

Non-food credit, accounting for 99.2% of the share of the total credit, recorded a growth of 6.0% , YoY, at Rs 10205724 crore as on 03 July 2020 as against a rise of 6.1% fortnight ago and 12.1% rise a year ago.

Food credit moved up 21.4% to Rs 85886 crore as on 03 July 2020.

The overall credit-deposit ratio eased on sequential basis to 73.1% as on 03 July 2020 from 73.9% a fortnight ago, while eased from 76.5% in July 2019 with the faster growth in deposits.

Aggregate deposits growth of the scheduled banks increased 11.0% YoY at Rs 14075185 crore as on 03 July 2020, compared with 11.0% growth a fortnight ago and 9.6% rise a year ago.

The time deposits showed an increase of 10.6% at Rs 12564652 crore, while the demand deposits increased 15.0% to Rs 1510533 crore as on 03 July 2020.

The banks investment in government and other approved securities that qualify for treatment of statutory liquidity ratio jumped 19.1% YoY to Rs 4217503 crore as on 03 July 2020, showing acceleration in growth from 19.5% increase a fortnight ago. The banks investment had moved up 1.3% in July 2019.

The investment-deposit ratio declined to 30.0% as on 03 July 2020, which is much higher above the Statutory Liquidity Ratio of 18.0%.

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