Bank credit growth eases to 17.7% in fortnight to July 15

Synopsis

Bank credit growth saw a slight deceleration to 17.7 percent year-on-year. Deposit growth also moderated to 12.7 percent in the same period. Outstanding bank credit reached Rs 217.3 lakh crore by mid-July. Deposits stood at Rs 262.9 lakh crore, maintaining a healthy ratio. Bankers noted steady credit demand, especially from the corporate sector.

Kolkata: Bank credit climbed 17.7% year-on-year in the fortnight ended July 15, slowing from the two-year high growth print of 18.6% seen in the preceding fortnight, Reserve Bank of India (RBI) data showed.

The pace of deposit growth also slowed to 12.7% from 13.3% seen a fortnight prior.

Outstanding bank credit stood at Rs 217.3 lakh crore at the end of July 15 while outstanding deposits stood at Rs 262.9 lakh crore.

The credit-deposit ratio for the banking sector stood at 82.68%.

Also read: India in strongest credit growth phase since 2012 on robust corporate demand: Report

Even as the pace of credit expansion slowed a bit, bankers said that they witnessed a steady demand for credit, especially from the corporate sector.

Banks have also raised their engagement with the micro, small and medium business sector through the government-backed financial assistance programme launched to provide fully or partially guaranteed additional funding in response to the West Asia crisis.