Bank credit growth eases to 12.31% as on 07 June 2019

Deposits rises 9.92% as on 07 June 2019

The Scheduled commercial banks (SCBs) credit growth moderated to 12.31% YoY to Rs 96519.2 crore as on 07 June 2019, compared with 12.70% growth a fortnight ago. The credit growth has improved from 10.91% at end June 2018.

Non-food credit, accounting for 99.20% of the share of the total credit, recorded a growth of 12.27%, YoY, at Rs 95743.2 billion as on 07 June 2019 as against a rise of 12.62% fortnight ago and 10.87% rise a year ago.

The overall credit-deposit ratio was steady on sequential basis at 76.97% as on 07 June 2019 from 76.98% a fortnight ago, while improved from 75.43% in June 2018 with the faster growth in loans.

 

Aggregate deposits growth of the scheduled banks increased 9.92% YoY at Rs 125402.3 billion as on 07 June 2019, compared with 10.10% growth a fortnight ago and 6.81% rise a year ago.

The time deposits showed an increase of 9.77% at Rs 112474.4 billion, while the demand deposits increased at slower pace of 11.24% to Rs 12928.0 billion as on 07 June 2019.

The banks investment in government and other approved securities that qualify for treatment of statutory liquidity ratio rose mere 1.6% YoY to Rs 34952.08 billion as on 07 June 2019, showing deceleration in growth from 4.4% increase a fortnight ago. The banks investment had moved up 6.0% in June 2018.

The investment-deposit ratio declined to 27.9% as on 07 June 2019, which is much higher above the Statutory Liquidity Ratio of 19.0%.

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