Bank credit growth slowed down to 16.8 per cent in the October-December 2022 period from a year earlier, RBI data showed. This compares with the 17.2 per cent growth in the previous quarter, according to the quarterly statistics on bank deposits and credit, released by the Reserve Bank of India on Monday

Credit growth of scheduled commercial banks (SCBs) accelerated further to 16.6 per cent in December from 8.4 per cent a year ago, according to Reserve Bank of India.

Credit portfolio of public sector banks increased by 15.7 per cent during the calendar year 2022 compared with 4.7 per cent in 2021, whereas private sector banks’ credit grew 19.1 per cent against 13.1 per cent a year ago.

“Growth in credit was led by bank branches in metropolitan centres, which account for nearly 60 per cent of the total credit by SCBs and recorded 17.2 per cent rise (y-o-y) in lending,” the central bank said in a release, adding that urban, semi-urban and rural centres also recorded double digit credit growth.

On the other hand, foreign banks reported a slowdown in credit growth, seeing an increase of 9.6 per cent in 2022, much lower than both 13.8 per cent as of September 2022 and 15.8 per cent as of December 2021.

Pvt, foreign banks

Aggregate deposits increased by 10.3 per cent in 2022, slightly higher than 9.8 per cent at the end of September. Deposit growth had stood at 9.6 per cent in 2021.

The deposit growth in 2022 was led by 13.2 per cent growth in term deposits, whereas low-cost current and savings (CASA) deposits recorded moderate growth of 4.6 per cent and 7.3 per cent, respectively.

Deposit mobilisation by public sector banks improved to 8.8 per cent as of December 2022 from 6.9 per cent a year ago. However, deposit accretion for private sector banks slowed to 13.2 per cent compared with 15.0 per cent in 2021.

Foreign banks, too, reported a slowdown with their deposits growing only 8.9 per cent as of December 2022, compared with 10.2 per cent a quarter ago and 10.3 per cent a year ago.

The all-India credit-deposit (C-D) ratio increased further to 75.9 per cent in December 2022 from 74.8 per cent in the previous quarter and 71.6 per cent in the previous year. It remained above 100 per cent for Andhra Pradesh, Maharashtra, Tamil Nadu, and Telangana, RBI said.