Credit-deposit ratio declines to two-year low of 75.5%
The Scheduled commercial banks' (SCBs) credit growth has moderated further to single digit level of 9.7% at Rs 61409.25 billion from 10.9% a fortnight ago and 13.9% at end March 2014. The bank credit growth at 9.68% as on 05 September stands at five-year low.An incremental credit expansion till 05 September 2014 in FY2015 so far stood at Rs 1468 billion, which shows sharp decline from Rs 3386 billion in the same period of FY2014.
Non-food credit, accounting for 98.3% of the share of the total credit, grew 9.8% to Rs 60365.68 billion, while food credit rose 2.9% to Rs 1043.57 crore on 05 September 2014. The overall credit-deposit ratio declined to two-year low of 75.5% as on 05 September 2014.
The aggregate deposit growth of scheduled banks increased at improved pace of 13.8% to Rs 81327.14 billion on 05 September 2014 over a year ago. Deposit growth was driven by improved growth for demand as well as time deposits. Time deposits moved up 13.7% at Rs 73867.12 billion, while demand deposits galloped 14.6% to Rs 7460.02 billion on 05 September 2014.
Banks' investment in government and other approved securities qualifying for treatment of statutory liquidity ratio increased at accelerated pace of 13.5% to Rs 24278.44 billion on 05 September 2014 over a year ago. The investment-deposit ratio inched up to 13-month high of 29.9% as on 05 September 2014, while it remains much higher above the statutory liquidity ratio of 22%.
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