Scheduled commercial bank credit growth accelerated further to 14.2% in June: RBI

Mumbai, August 25

Credit growth (year-on-year) from regular commercial banks (SCBs) accelerated further to 14.2% in June, from 6% a year ago and 10.8% a quarter ago, according to the Reserve Bank of India.

However, overall deposit growth (year-on-year) has remained between 9.5% and 10.2% over the past five quarters.

Credit to deposit ratio

As credit growth outpaces deposit growth in the recent period, the credit-to-deposit (CD) ratio has increased. In June, the CD ratio stood at 73.5% India-wide (70.5% a year ago) and 86.2% for metropolitan branches of banks (84.3% a year ago). a year ago), according to RBI’s “Quarterly Deposit Statistics” statement. and SCB credit: June 2022′.

Credit growth was widespread: all population groups (rural, semi-urban, urban and metropolitan), all banking groups (public/private banks, foreign banks, rural regional banks and small financial banks) and all regions (center, east, northeast, north, south and west) recorded double-digit annual credit growth in June, the central bank said.

Regarding deposit growth, RBI observed that metropolitan branches continued to account for more than half of bank deposits and that their share had increased slightly over the past year.

The central bank said the share of deposits in current and savings accounts (CASA) in total deposits has increased over the past three years (42.0%, 43.8% and 44.5% in June 2020, 2021 and 2022, respectively).

Published on

August 25, 2022

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