Individuals and entities with significant bank borrowings did not hesitate to take even more credit from banks in the quarter ended September 2012. Conversely, there was a decline in the credit issued to people with no borrowings. This was also the segment that saw the fastest growth in deposits during the period.

An analysis of the data segregating borrowers in terms of their Credit-Deposit ratio – the quantum of credit taken by banks vis-à-vis the amount of money deposited – show that credit disbursed to borrowers with a CD ratio of 80-100 rose by 20.4 per cent in the quarter.

In the case of individuals with a CD ratio greater than 100, the quantum of credit disbursed rose by 16.7 per cent. But in the case of people with a CD ratio of 0-25, there was a 5.7 per cent decline in credit disbursement.

What is more, the segment of borrowers with little or no debt witnessed a 17.4 per cent rise in deposits, more than any other category. People with a CD ratio greater than 100, on the other hand, deposited put 0.8 per cent less in the quarter under review.

The data also shows disbursement of loans and other credit by banks witnessed the fastest growth in rural areas of the country in the quarter. Credit issued by banks shot up by 27.8 per cent during the period.

In comparison, semi-urban areas only saw a 17.9 per cent improvement in credit disbursement, while it rose by just 12.1 per cent in urban areas. The growth was lowest in the metropolitans, with a 11.9 per cent rise in credit disbursement. Overall, there was a 13.7 per cent increase in credit provided by banks to various categories of borrowers.

Bank deposits, on the other hand, saw the largest growth in semi-urban areas in the September quarter, increasing by 17.6 per cent. They rose by 17.2 per cent in both rural and semi-urban areas, but by just 8.8 per cent in the metros.

>arvind.jayaram@thehindu.co.in

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