Bank credit grows by 5.82 percent, deposits by 10.89 percent

MUMBAI: Bank credit grew at 5.82 % to Rs 104.34 lakh crore, while deposits rose by 10.89 % 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 % and deposits by 10.63 %.

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

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

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

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

During the month, personal loans registered a decelerated growth of 9.3 % as compared with 17.2 % 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.