The credit to deposit ratio fell to 73.1 per cent in the June quarter, from 76 per cent in the preceding quarter as the nationwide lockdown imposed in March-end brought economic activity to a near standstill.

While for private banks, credit growth moderated to 7.2 per cent in Q1FY21, from 9.3 per cent in Q4FY20, public sector banks (PSBs) and regional rural banks saw a rise.

For PSBs credit growth moved up to 5.7 per cent, from 4.2 per cent, while for RRBs it rose from 6.1 per cent to 6.7 per cent.

Entering into the second quarter, credit offtake is inching up gradually with schemes like government guaranteed emergency credit for MSMEs. Yet, the credit to deposit ratio moved down to 72.58 by middle of August 2020.