Non-food credit of banks rises to 11.04%

By: | Published: September 27, 2016 6:14 AM

The growth rate of non-food credit of banks increased to 11.04% (y-o-y) during the fortnight ended September 16, as compared to 9.91% in the previous fortnight, data released by the Reserve Bank of India on Monday showed.

The growth rate of non-food credit of banks increased to 11.04% (y-o-y) during the fortnight ended September 16, as compared to 9.91% in the previous fortnight, data released by the Reserve Bank of India on Monday showed.

Outstanding non-food credit in the banking system stood at R73.10 lakh crore as on September 16, compared with R65.83 lakh crore in the same fortnight last year — an increase of R7.27 lakh crore.

On the other hand, the rate of growth in deposits improved slightly to 9.87% (y-o-y), compared to 9.80% (y-o-y) in the previous fortnight. As on September 16, total deposits in the system stood at R97.87 lakh crore.

With hardly any growth in project loan sanctions, the 11.04% credit growth is most likely a function of demand from the retail segment, something which several large banks have lately spoken about as their focus area. Another bright spot for loan growth in recent months has been demand for working capital loans.
fe Bureau

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