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Credit extended by all scheduled banks since the beginning of the new financial year and up to May 6 has shown a robust growth against a decline in the year-ago period, according to RBI data.
Banks’ disbursed credit aggregated to ₹1,58,719 during the reference period against a de-growth of ₹87,959 crore in the year-ago period.
Double-digit growth
In an article in the latest monthly bulletin, RBI officials noted that the growth in scheduled commercial banks’ credit to the commercial sector crossed double digits for the first time since August 2019 and accelerated to 11.1 per cent as on April 22, 2022, as compared with 5.7 per cent a year ago.
Deposit growth has been robust at 2.26 times the year-ago period. Banks deposit inflow of ₹2,29,972 crore against ₹1,01,702 crore in the year-ago period, according to RBI’s scheduled banks’ statement of position in India.
In the reporting fortnight ended May 6, 2022, the incremental credit-deposit ratio was at 126 per cent, indicating that incremental credit growth is faster than incremental deposit growth. With an increase in the incremental credit to deposit ratio since December 2021, banks have started raising rates on term deposits to mobilise stable funding to meet the increased demand for credit, per the bulletin.
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