Bank credit growth flat at 9.8% for third straight month

Banks SLR investments rise at accelerated pace of 15.7%

The credit growth for Scheduled commercial banks' (SCBs) has continued to moderate and flat for third straight month at 9.8% to Rs 66538.4 billion as on 12 June 2015 over a year earlier. The credit growth also remains in single digit for sixth straight month.

Non-food credit, accounting for 98.2% of the share of the total credit, grew 9.8% to Rs 65369.8 billion as on 12 June 2015 as against a rise of 12.8% a year ago. The overall credit-deposit ratio declined to 75.9% as on 12 June 2015 from 77.2% a year ago, while improved from recent lows of 75.4% in April 2015.

 

Aggregate deposits of the scheduled banks increased 11.7% to Rs 87664.6 billion as on 12 June, compared with 11.7% increase a year ago. The deposits growth touched historic low levels of 11.4% in FY2015, while it continues to hover in the range of 11-13% for last thirteen sequential months. The time deposits moved up 11.8% at Rs 79700.4 billion, while demand deposits increased 10.4% to Rs 7964.3 billion as 12 June 2015 over a year ago.

Banks' investment in government and other approved securities that qualify for treatment of statutory liquidity ratio (SLR) increased 15.7% to Rs 26384.9 billion as on 12 June 2015 over a year ago, showing acceleration in the pace of growth from 7% growth in June 2014. The investment-deposit ratio increased to 30.1% as on 12 June 2015, compared with 28.9% a year ago. The investment-deposit ratio remains much higher above the statutory liquidity ratio of 21.5%.

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