Bank credit, deposits grow in double digits

Bank credit and deposits continued to grow in double digits as they rose 12.02% and 10.32% to Rs 96.975 lakh crore and Rs 126.746 lakh crore, respectively in the fortnight to July 5.

According to the latest Reserve Bank of India data, bank credit was at Rs 86.566 lakh crore, while deposits were at Rs 114.883 lakh crore in the year-ago fortnight.

In the previous fortnight to June 21, bank loans had risen 12% to Rs 96.485 lakh crore and deposits 10.02% to Rs 124.905 lakh crore.

On a year-on-year basis as of May, non-food credit increased 11.4% from 11.1%.

Personal loan growth slowed to 16.9% in May from 18.6% in the year-ago period.

Credit growth to the services sector also lost steam and grew at a much slower pace of 14.8% in May down from a high 21.9% in the same month last year.

Loans to agriculture & allied activities increased by 7.8% compared to increase of 6.4%. 

Credit to the industry rose at much faster clip of 6.4% in May as against an increase of a paltry 1.4% in May 2018. The total bank credit at the end of  April 26 was at Rs 86.74 lakh crore growing at 11.7%  over the previous year. While the private capex investments are yet to pick up, government spending in infrastructure, led by telecommunications, roads and power sectors, has seen a visible pick-up in credit.