Banks Loan Growth At 7.5% In Fortnight To Jan. 2: RBI Data
Indian five hundred rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)  

Banks Loan Growth At 7.5% In Fortnight To Jan. 2: RBI Data

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Banks’ credit grew by 7.57 percent to Rs 100.44 lakh crore while deposits rose by 9.77 percent to Rs 132.10 lakh crore in the fortnight to Jan. 2, according to the Reserve Bank of India data.

In the year-ago period, banks loans stood at Rs 93.37 lakh crore while deposits at Rs 120.33 lakh crore.

In the previous fortnight ended Dec. 20, credit had grown by 7.10 percent to Rs 99.47 lakh crore and deposits had increased by 10.09 percent to Rs 130.08 lakh crore.

On a year-on-year basis, banks' credit growth slowed to 7.2 percent to Rs 86.73 lakh crore in November 2019 from 13.8 percent to Rs 80.93 lakh crore in the year-ago period.

For the industry, loan growth fell to 2.4 percent at Rs 27.72 lakh crore in November from 4 percent in the corresponding month of 2018.

During the month, credit to agriculture and allied activities slowed to 6.5 percent from 7.7 percent last year.

Advances to the services sector decelerated sharply to 4.8 percent from 28.1 percent last year.

Personal loans grew at a marginally lower rate of 16.4 percent in November 2019 as compared with 17.2 percent, according to the RBI data.

Rating agency ICRA in its recent report had said credit expansion may plummet to a six-decade low of 6.5-7 percent in 2019-20 compared to 13.3 percent in the previous financial year.

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