Money & Banking

Credit growth of banks picks up to 6.2% y-o-y in Dec

Our Bureau Mumbai | Updated on February 25, 2021

Bank credit growth improved to 6.2 per cent year-on-year (y-o-y) in December 2020 from 5.8 per cent in the previous quarter, but it remained lower when compared with the 7.4 per cent growth recorded a year ago, according to the Reserve Bank of India (RBI).

In its statement on ‘Quarterly Statistics on Deposits and Credit of SCBs: December 2020’, the RBI observed that all population groups (that is rural, semi-urban, urban and metropolitan) recorded lower credit growth compared to a year ago.

Growth (y-o-y) in credit by private sector banks decelerated considerably to 6.7 per cent in December 2020 (13.1 per cent a year ago), whereas that of public sector banks improved to 6.5 per cent in December 2020 (3.7 per cent in December 2019).

Deposit growth

Aggregate deposits growth (y-o-y) of Scheduled Commercial Banks (SCBs) increased to 11.1 per cent in December 2020 (10.0 per cent a year ago), with all population groups recording double-digit growth.

Annual growth in current, savings and term deposits of SCBs stood at 13.0 per cent, 15.8 per cent and 8.2 per cent, respectively, in December 2020.

Published on February 25, 2021

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