Credit grows by 16.22% YoY and bank deposits 12.96%, shows RBI data

Reflecting surge in quarter-end business, Commercial Bank credit expanded by 16.22 per cent Year on Year (YoY) basis to Rs 143.91 trillion at the end of fortnight ended June 30, 2023. The credit had expanded by 14.4 per cent YoY a year ago, according to Reserve Bank of India data.

Sequentially, bank lending in absolute amounts expanded by Rs 3.68 trillion reporting fortnight (Ended June 30, 20223) over previous fortnight (Ended June 16, 2023).

Besides robust demand across segments, rise tied to quarter-end business also pushed the loan volumes in fortnight, bankers said.

Bank deposits grew by 12.96 per cent YoY to Rs 191.59 trillion. Sequentially, deposits in absolute terms grew by Rs 5.91 trillion in reporting fortnight over previous fortnight.

Besides thrust on deposit mobilisation, the decision (May 19, 2023) to withdraw Rs 2,000 note from circulation also swelled the kitty of banks, bankers said.

The value of notes received back from circulation after the withdrawal announcement was Rs 2.72 trillion upto June 30, 2023. About 76 per cent of the Rs 2,000 notes had returned till June 30, with 87 per cent being deposited and 13 per cent exchanged, according to RBI.