A customer waits to deposit Indian 100 rupee banknotes at a counter inside an Axis Bank Ltd. branch in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Bank Credit Grows 14.5%, Deposits Up 9.63%

Bank credit as well as deposits growth marginally declined on a fortnightly basis, according to latest data from the Reserve Bank of India. While credit was clipped at 14.5 percent to Rs 94.29 lakh crore, deposits grew at a tepid 9.63 percent to Rs 121.22 lakh crore for the fortnight ending Feb. 1.

In the previous fortnight ended Jan. 18, deposits had increased 9.69 percent to Rs 119.86 lakh crore and credit grew 14.61 percent to Rs 93.32 lakh crore.

The decline was mainly due to poor show by agriculture and allied activities and the personal loans during the week.

Credit demand from agriculture and allied activities grew 8.4 percent in December 2018, compared to an increase of 9.5 percent in December 2017. Industrial credit rose 4.4 percent in December 2018 over 2.1 percent in the year-ago month.

Similarly, non-food credit also increased faster at 12.8 percent year-on-year in December 2018 compared to a 10 percent growth in the same month last year.

Also read: Non-Food Bank Credit Growth At 12.8% In December

Credit to the services sector almost doubled to 23.2 percent in the reporting month against 14.7 percent a year ago, but personal loans growth decelerated to 17 percent from 18.9 percent.