Bank credit grows by 14.19 per cent; deposits by 10.60 per cent: RBI data

Mumbai: Bank credit rose by 14.19 per cent to Rs 96.45 lakh crore while deposits grew 10.60 per cent to Rs 125.30 lakh crore in the first fortnight ended on April 12, according to recent RBI data. In the year ago fortnight, deposits were at Rs 113.29 lakh crore and advances stood at Rs 84.46 lakh crore.

In the fiscal ended March 2019, bank credit had risen by 13.24 per cent and deposits grew by 10.03 per cent. This was the second consecutive double-digits credit growth after the same had declined to 4.54 per cent in FY17 at Rs 78.41 lakh crore, which was the lowest since 1963, the RBI data said.

On a year-on-year basis, non-food bank credit increased by 13.2 per cent in February 2019 as compared with an increase of 9.8 per cent in the year-ago period. Loans to the services sector almost doubled with a 23.7 per cent growth in February compared to 14.2 per cent in the same month last year.

Advances to agriculture and allied activities increased by 7.5 per cent in February compared to an increase of 9 per cent in February 2018. Credit to the industry rose by 5.6 per cent in February, up from an increase of 1 per cent in February 2018.

Credit to the infrastructure, chemical and chemical products, and all engineering sectors accelerated. However, credit growth to basic metal & metal products, textiles, and food processing decelerated/contracted.
Personal loans rose 16.7 per cent in February down from 20.4 per cent in February 2018, the RBI said.