RBI says bank credit growth accelerates to 17.2 % in September quarter: Report
PTI | | Posted by Singh Rahul Sunilkumar
Bank credit growth improved to 17.2 per cent in the September quarter 2022 from 7 per cent in the year-ago period, reflecting pick-up in economic activities.
“Credit growth remained broad-based: all population groups and bank groups recorded double digit annual growth,” the Reserve Bank said while releasing ‘Quarterly Statistics on Deposits and Credit of SCBs: September 2022’.
Bank credit growth improved further to 17.2 per cent (year-on-year) in September 2022 from 14.2 per cent a quarter ago and 7 per cent a year ago, it said.
Aggregate deposits growth (y-o-y), which remained in the close range of 9.5-10.2 per cent since June 2021, stood at 9.8 per cent in September 2022. Since December 2020, bank branches in metropolitan centres have been recording higher annual growth than those in rural, semi-urban and urban areas.
Private sector bank group has been outpacing public sector banks, foreign banks and regional rural banks in deposit mobilisation, the RBI said.
As per the data, year-on-year growth in term deposits rose to 10.2 per cent in September 2022 from 6.4 per cent a year ago. Current and savings deposits growth moderated to 8.8 per cent and 9.4 per cent from 17.5 per cent and 14.5 per cent, respectively, a year ago.
“The share of savings deposit in total deposits, which increased from 32.4 per cent in June 2019 to a peak of 35.2 in June 2022, moderated marginally to 34.7 in the latest quarter,” the RBI added.
It further said the all-India credit-deposit (C-D) ratio increased further to 74.8 per cent in September 2022 from 73.5 per cent a quarter ago and 70 per cent a year ago. The C-D ratio for metropolitan bank branches, which have a dominant share in the banking business, stood much higher at 87.6 per cent in September 2022 (82.8 per cent a year ago).