The Reserve Bank of India (RBI) on Monday said the credit growth of the banking system stood at 16.8% for the three months ended December 31, compared with an 8.4% rise in the year-ago period and a 17.2% increase at the end of the second quarter of the current fiscal.
The loan growth was led by bank branches in metropolitan centres, which account for nearly 60% of the total credit by banks and recorded a 17.2% Y-o-Y rise in lending. Urban, semi-urban and rural centres recorded an over 10% credit growth, the RBI said.
The loan growth was led by private sector banks, which saw a 19.1% Y-o-Y rise in 2022, compared with 13.1% a year ago. Public sector banks increased their credit portfolio by 15.7% during the calendar year, against 4.7% in 2021.
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On the other hand, total deposits increased 10.3% y-o-y in Q3FY23, compared with 9.6% a year ago, led by a 13.2% growth in term deposits. Current and savings deposits recorded a moderate growth of 4.6% and 7.3%, respectively. Deposit mobilisation by PSBs improved to 8.8% during the quarter, compared to 6.9%, though it remained lower than a 13.2% growth in deposits for private lenders.
The all-India credit-deposit (CD) ratio increased to 75.9% during the quarter compared to 74.8% in Q2FY23 and 71.6% a year ago. The CD ratio of banks remained above 100% in Andhra Pradesh, Maharashtra, Tamil Nadu and Telangana.