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Bank credit up 14.5% to Rs 94.29 trn, deposits rise 9.63%: RBI data

The pick-up in economic activity has boosted credit demand

Abhijit Lele  |  Mumbai 

bank credit
Representative image

The pace of growth in bank credit, as well as deposits, has moderated on a fortnightly basis. While credit grew 14.5 per cent to Rs 94.29 trillion, rose a tepid 9.63 per cent to Rs 121.22 trillion for the fortnight ending February 1, according to the latest (RBI) data. In the fortnight ended January 18, had increased by 9.69 per cent to Rs 119.86 trillion and credit grew 14.61 per cent to Rs 93.32 trillion, the showed.

The gap between pace of credit disbursal and mobilisation is widening. This would maintain the pressure on deposits rates. According to bankers, these may not soften, even though the RBI reduced policy repo rate by 25 basis points, bankers said.

The RBI in its sixth said the aggregate and overall financial flows to the commercial sector continue to be strong but are yet to be broad-based.


According to the RBI’s monthly bulletin released in February, the sectoral deployment of saw a qualitative shift with aggressive lending to the and in the form of Credit to industry has gradually gained momentum in 2018-19 so far after a prolonged contraction.

The pick-up in economic activity has boosted credit demand. However, their lending rates have remained in the shadow of the large pool of bad loans, the bulletin added.

First Published: Thu, February 14 2019. 02:54 IST