Bank credit growth slowed down in March: RBI data

Mumbai (IANS) India’s bank credit growth slowed down to 5.6 per cent in March 2021, according to data published by the Reserve Bank of India (RBI) on Friday.

In March 2020, credit growth was 6.4 per cent.

The central bank’s ‘Quarterly Statistics on Deposits and Credit of SCBs: March 2021’ showed that combined credit by bank branches in top six centres — Greater Mumbai, Delhi, Bengaluru, Chennai, Hyderabad and Kolkata — which together accounted for over 46 per cent of total bank credit, declined marginally during 2020-21.

Bank branches in urban, semi-urban and rural areas, on the other hand, recorded 9.4 per cent, 14.3 per cent and 14.5 per cent credit growth, respectively, during the year.

Further, public sector and private sector banks recorded 3.6 per cent and 9.1 per cent credit growth, respectively, whereas lending by foreign banks declined during 2020-21.

Aggregate deposits growth (y-o-y) accelerated to 12.3 per cent in March 2021 from 9.5 per cent a year ago. Metropolitan branches, which account for over half of total deposits, recorded nearly 15 per cent growth during 2020-21.

The share of current account and savings account (CASA) deposits in total deposits increased to 44.1 per cent in March 2021 from 42.1 per cent a year ago, showed the RBI data.

The share of private sector banks in total deposits and credit by SCBs increased during 2020-21 at the cost of public sector banks.

Lower growth in credit in respect to deposits led to decline in the all-India credit-deposit (C-D) ratio to 71.5 per cent in March 2021 from 76 per cent a year ago.

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