Deposit growth improves to 17%, credit up 15%

On credit disbursal front, loan disbursal inched up albeit in small measure

Commercial banks continued to report a steady improvement in deposit mobilisation in December, with year-on-year growth pegged at 17 per cent, mainly showing the effect of inflows from non-resident Indians.  

The deposit portfolio was Rs 75,24,217 crore as of December 13, according to Reserve Bank of India data. The year-on-year growth was 16.1 per cent as at end-November. It was 15.4 per cent by the end of October.

Bank executives said banks had raised $34 billion from NRIs in foreign currency deposits ((FCNR(B)). In rupee terms, it amounts to Rs 144,000 crore after swapping dollars with RBI.

After the festive season, some part of currency with the public has also flown back into bank deposits. Plus, some money has been deposited into banks on completion of elections for state legislatures in five states, said a senior executive with a public sector bank.

Year-on-year credit growth was 14.9 per cent as of mid-December. The loan portfolio of the banking system was Rs 57,01,328 crore. With a slowing economy, credit demand remains weak. Most corporate credit offtake is for meeting working capital requirements. The demand from the retail segment for loans is steady and agricultural credit might see a rise during the fourth quarter, coinciding with the rabi season, said a bank official.