Non-food credit grows below 14%

Written by fe Bureau | Mumbai | Updated: Jun 27 2013, 06:14am hrs
Non-food credit growth slipped below 14% for the first time in over two months, according to the latest fortnightly data released by the Reserve Bank of India (RBI).

For the fortnight ended June 14, credit growth in the banking system stood at 13.6% at R52,46,900 crore. In the same period last year credit growth stood at 14.3% at R46,08,947 crore.

Before this, the last time credit growth slipped below 14% was for the fortnight ended on April 4, 2013. The first half of the year usually remains slow in terms of credit demand, bankers said, but this time it is more so because new projects are still not taking off. They expect better credit growth only in the second half of FY14. For FY14, RBI has projected credit growth of 15%, 100 basis points below last fiscal year.

Meanwhile, deposit growth remained under 14% for the sixth consecutive quarter. According to the latest RBI data, deposit growth was 13.6% at R69,50,644 crore, for the fortnight ended June 14. The RBI has projected deposit growth of 14% for FY14.