Non-food credit growth falls to 2-year low of 7.9%

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Published: November 21, 2019 1:43:53 AM

The credit growth rose marginally to 8.79% during the fortnight ended October 25, buoyed by the festive season and loan melas organised by the public sector banks (PSBs) in October to push retail loan growth.

The credit growth figure is the lowest since October 2017.The credit growth figure is the lowest since October 2017.

Non-food credit growth in the banking system fell to a two-year-low of 7.92% year-on-year (y-o-y) during the fortnight ended November 9. The credit growth figure is the lowest since October 2017.

According to provisional data released by the central bank, outstanding loans to companies and individuals were at Rs 97.67 lakh crore as on November 9, up from Rs 90.5 lakh crore during the comparable fortnight of 2018. Between October 25 and November 8, non-food credit declined by 0.01% from Rs 97.69 lakh crore.

Earlier, non-food credit growth had fallen to a single-digit record low of 8.69% in the fortnight ended September 27. The credit growth rose marginally to 8.79% during the fortnight ended October 25, buoyed by the festive season and loan melas organised by the public sector banks (PSBs) in October to push retail loan growth.

Deposit growth in the banking system fell to 9.92% y-o-y to Rs 129.99 lakh crore during the fortnight ended November 9. During the comparable fortnight of 2018, deposits with banks had grown by 9.14%. The credit deposit (CD) ratio for the fortnight stood at 75.14, down from 75.27 in the previous fortnight.

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