Credit Growth By Banks Accelerates To 14.2% During April-June 2022: RBI Data

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In an indication to the economic recovery, growth in loans extended by scheduled commercial banks (SCBs) picked pace to 14.2 per cent in the June 2022 quarter, compared with 6 per cent in the year-ago quarter. On a sequential basis also, the growth is higher as compared with 10.8 per cent in the March 2022 quarter. The credit growth has been broad-based, according to the latest RBI data.

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Credit growth (y-o-y) accelerated further to 14.2 per cent in June 2022 from 6 per cent a year ago and 10.8 per cent a quarter ago. Credit growth has been broad-based: all the population groups (i.e., rural, semi-urban, urban and metropolitan), all the bank groups (i.e., public/private sector banks, foreign banks, RRBs and SFBs) and all the regions of the country (i.e., central, eastern, north-eastern, nothern, southern and western) recorded double-digit annual credit growth in June 2022,” said the RBI in its ‘Quarterly Statistics on Deposits and Credit of SCBs: June 2022’.

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The data is collected from all scheduled commercial banks (SCBs), including regional rural banks (RRBs), small finance banks (SFBs) and payments banks (PBs).

It added that aggregate deposit growth (y-o-y) has remained in the range 9.5-10.2 per cent during the last five quarters: Metropolitan branches continue to account for over half of the bank deposits and their share increased marginally over the last one year.

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“The share of current account and savings account (CASA) deposits in total deposits has been increasing over the last three years (42.0 per cent, 43.8 per cent and 44.5 per cent in June of 2020, 2021 and 2022, respectively),” the central bank said.

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The data also showed that as credit growth is outpacing deposit growth in the recent period, credit-deposit (C-D) ratio has been on the rise. In June 2022, C-D ratio stood at 73.5 per cent at all-India level (70.5 per cent a year ago) and 86.2 per cent for metropolitan branches of banks (84.3 per cent a year ago).