Bank credit grows 6.18 per cent, deposits 11 per cent: RBI data

According to Reserve Bank of India(RBI), Bank credit and deposits witnessed a growth of 6.18 per cent and 11 per cent to Rs 102.45 lakh crore (US4 1.45 trillion) and Rs 138.67 lakh crore (US4 1.96 trillion), respectively, in the fortnight ended June 19, 2020. Whereas, in the fortnight ended June 21, 2019, bank credit had stood at Rs 96.48 lakh crore (US$ 1.36 trillion) and deposits at Rs 124.92 lakh crore (US4 1.77 trillion).

In the previous fortnight that ended on June 5 this year, advances had grown 6.24 per cent and deposits by 11.28 per cent.

According to a recent report by the rating agency Crisil, bank credit growth is likely to drop to a multi-decadal low of 0-1 per cent in 2020-21 as economic activity is sharply impacted by the COVID-19 pandemic.

For May 2020, the non-food credit growth slowed to 6.8 per cent year-on-year from 11.4 per cent in the corresponding period of the previous year, as per RBI data.

The outstanding incremental non-food credit stood at Rs 90.3 lakh crore (US$ 1.28 trillion) as of May 22, 2020, against Rs 84.51 lakh crore (US$ 1.19 trillion) on May 24, 2019.

In May 2020, bank loan growth to industry slowed down to 1.7 per cent from 6.4 per cent in the corresponding month last year.

The loan growth to the services sector decreased to 11.2 per cent in May, compared with 14.8 per cent a year ago.

Personal loans growth decelerated to 10.6 per cent in May 2020, against 16.9 per cent in May 2019, RBI data showed.