As per recent data from the Reserve bank of India, within the fortnight ended on 5th June, there was a rise in bank credit and deposit of 6.24 percent and 11.28 percent to Rs 102.54 lakh crore and Rs 139.55 lakh crore respectively. And the bank loans had stood at Rs 96.51 lakh crore and deposit at Rs 125.40 lakh crore within the fortnight ended 7th June.
In the first week of June, bank advances grew from 0.3 percent or Rs 32,022 crore to Rs 102.54 lakh crore as against Rs 102.22 lakh crore within the week ended on 22nd of May. The data exhibit growth in the deposit of Rs 1.25 lakh crore or 0.9 percent on a fortnightly basis. There has been a sudden rise in bank deposits over the past couple of months. On account of an increase in overall borrowings of both central and state governments and not due to an increase in savings, as per India Rating and Research.
Crisil Ratings had said that bank credit growth is probably going to nosedive to a multi-decadal low of 0-1 percent this fiscal as economic activity is severely affected by the COVID-19 pandemic. The outstanding incremental non-food credit growth contracted 1.2 percent to Rs 91 lakh crore, from Rs 92.12 lakh crore in March, showed in RBI data.
In April 2020, according to data on a year-on-year basis, non-food credit growth declined to 7.3 percent from 11.9 percent in the corresponding month last year. In April 2020, the reduction to 3.9 percent from 7.9 percent in April 2019 in loan growth to agriculture and associated activities. In the fortnight ended on August 30th, 2019, bank loans showed an increase of 10.24 percent to Rs 96.80 lakh crore and deposits by 9.73 percent to Rs 127.80 lakh crore. While in July 2019 personal loans showed a rise by 17 percent as compared with an increase of 16.7 percent in July 2018. Credit to agriculture & allied activities rose by 6.8 percent as compared with an increase of 6.6 percent in the same month in 2018.
In April 2019. there has been a decline to 11.2 percent in growth in advances to the services sector from 16.8 percent. Whereas in April 2020 personal loan growth got reduced to 12.1 percent from 15.7 percent in April 2019.
