Credit growth shows dismal numbers for government banks, but still grabbing major share in total credit disbursed
MUMBAI: Public sector banks and metropolitan branches continued to corner the largest share of deposits accumulated by banks along with the credit disbursed by them over the last quarter said the reserve Bank of India in a report released today.
PSBs cornered a share of 70.6% of aggregate deposits and 66.2% of the aggregate credit disbursed by Indian banks. Further branches located in metro cities also cornered 51.6% of the aggregate deposits and 65% of the total bank credit, said the report.
While as a share of the total bank credit and deposit, public sector banks have done well, RBI also said that in terms of growth in credit disbursed their private peers are way ahead of them
In the months between October, November and December while State Bank of India and its group entities managed to grow their credit book by 5.3%, the other government owned banks together grew by a meagre 2.9%. However private sector lenders grew 17.7% while regional rural banks showed 10% growth.
While the months of November and December were extraordinary in terms of the sheer tumult seen in the banking ecosystem because of demonetisation, the amount of money that has come into the banking system as deposits in the form of old 500 and 1000 denomination notes is seen in the growth in the deposit numbers.
The State Bank group showed a growth of 21.6% in the December quarter against 23% for private banks, 32% for RRBs and 11% for other government banks. The foreign banks showed a slump in deposit of 1.7%.
PSBs cornered a share of 70.6% of aggregate deposits and 66.2% of the aggregate credit disbursed by Indian banks. Further branches located in metro cities also cornered 51.6% of the aggregate deposits and 65% of the total bank credit, said the report.
While as a share of the total bank credit and deposit, public sector banks have done well, RBI also said that in terms of growth in credit disbursed their private peers are way ahead of them
In the months between October, November and December while State Bank of India and its group entities managed to grow their credit book by 5.3%, the other government owned banks together grew by a meagre 2.9%. However private sector lenders grew 17.7% while regional rural banks showed 10% growth.
While the months of November and December were extraordinary in terms of the sheer tumult seen in the banking ecosystem because of demonetisation, the amount of money that has come into the banking system as deposits in the form of old 500 and 1000 denomination notes is seen in the growth in the deposit numbers.
The State Bank group showed a growth of 21.6% in the December quarter against 23% for private banks, 32% for RRBs and 11% for other government banks. The foreign banks showed a slump in deposit of 1.7%.
