Bank credit grows by 5.82%, deposits by 10.89%

By: |
December 4, 2020 10:20 PM

During the month, personal loans registered a decelerated growth of 9.3 per cent as compared with 17.2 per cent growth in October 2019.

The role of banks and NBFCs in powering small businesses in the post-pandemic new world order goes way beyond routine financing. (Image: IE)

Bank credit grew at 5.82 per cent to Rs 104.34 lakh crore, while deposits rose by 10.89 per cent to Rs 143.71 lakh crore in the fortnight ended November 20, the RBI data showed.

In the fortnight ended November 22, 2019, bank credit stood at Rs 98.60 lakh crore and deposits at Rs 129.58 lakh crore.

In the previous fortnight ended November 6, advances grew by 5.67 per cent and deposits by 10.63 per cent.

In October, non-food credit growth decelerated to 5.6 per cent compared to a growth of 8.3 per cent in the same month of the previous year.

Growth in loans to agriculture and allied activities accelerated to 7.4 per cent in the month from a growth of 7.1 per cent last year.

Credit to industry contracted by 1.7 per cent in October 2020 as compared with 3.4 per cent growth in October 2019.

Growth in loans to the services sector accelerated to 9.5 per cent in October 2020 from 6.5 per cent in the same month of the previous year.

During the month, personal loans registered a decelerated growth of 9.3 per cent as compared with 17.2 per cent growth in October 2019.

Care Ratings in its recent report said the overall credit growth is expected to remain slower in the near term as banks are being selective in giving fresh loans due to asset quality concerns.

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