Credit, deposits growth decline in Q2: RBI

The deposits and credit growth of commercial banks declined to 10.2 per cent and 8.9 per cent in the September quarter of this fiscal.
The growth rate of deposits and credit was 12.3 per cent and 9.5 per cent, respectively, in the same quarter last year.
The deceleration was generally broad-based across the population groups except for constant deposits growth in semi-urban areas, and accelerated growth in gross bank credit in the urban areas, the apex bank said in a report titled 'Quarterly Statistics on Deposits and Credit of Commercial Banks: September 2015'.
The report, however, noted that the annual growth in both aggregate deposits and gross bank credit was higher in September than a year ago for SBI and associates, regional rural banks and private sector banks. But when compared with the preceding quarters, growth in aggregate deposits of public sector banks was lower.

The credit-deposit (C-D) ratio at the national level stood at 75 per cent as of September 25, the last day of the calculation. But the ratio was the highest for Chandigarh (120.9 per cent), followed by Tamil Nadu (115.0 per cent), Telangana (103.3 per cent), Andhra (103.1 per cent), Maharashtra (93.8 per cent), NCT of Delhi (91.4 per cent), and Rajasthan (84.7 per cent).
Seven states -- Maharashtra, NCT of Delhi, Tamil Nadu, Karnataka, UP, Bengal and Gujarat -- accounted for 68.1 per cent of the total deposits and credit.

Maharashtra alone contributed 25.1 per cent in the total business. These seven states accounted for 65.8 per cent of deposits and 71.2 per cent of credit, the report said.

Nationalised banks continued to maintain their dominant position, contributing around half of both the deposits as well as credit for the system.
SBI and its associates and private sector banks had almost similar shares of 20-23 per cent for both aggregate deposits and gross bank credit.