Banks credit grew at 6.13 percent to Rs 101.04 lakh crore while deposits expanded by 9 percent to Rs 133.31 lakh crore in the fortnight to February 28, according to the latest Reserve Bank data. In the year-ago fortnight ended March 1, 2019, banks' advances were at Rs 95.20 lakh crore while deposits stood at Rs 122.30 lakh crore.
In the previous fortnight which ended on February 14, 2020, bank credit had grown by 6.36 percent to Rs 100.41 lakh crore, while deposits rose by 9.2 percent to Rs 132.35 lakh crore.
In January 2020, bank credit growth declined to 8.5 percent as against a growth of 13.5 percent year-ago, led by a sharp slowdown in loans to the services sector.
Growth in advances to the services sector decelerated to 8.9 percent from 23.9 percent in January 2019.
During the month, the personal loans segment grew by 16.9 percent, unchanged from the year-ago period.
Within personal loans, credit to housing segment grew by 17.5 percent from 18.4 percent, while education loan showed a negative growth of 3.1 percent as against a negative growth of 2.3 percent in January 2019, the RBI data showed.
Advances growth to agriculture and allied activities contracted to 6.5 per cent from 7.6 per cent rise last year. Credit growth to industry decelerated to 2.5 percent from 5.2 percent.
News Source: Economic Times, Url: https://bit.ly/39UW7VT