Bank credit grows 6 pc in June, BFSI News, ET BFSI

Bank credit grew at a slower pace of 6 per cent in June compared to 6.4 per cent in the year-ago period mainly due poor offtake in metros, RBI data showed on Tuesday. Year-on-year growth in credit by private sector banks at 10.1 per cent was much higher than that for public sector lenders at 3.1 per cent, as per the data.

“Bank credit recorded 6.0 per cent growth (y-o-y) in June 2021 (6.4 per cent growth a year ago): bank branches in urban, semi-urban and rural centres recorded double-digit credit growth but it moderated for metropolitan branches to 2.7 per cent (5.1 per cent a year ago),” according to the RBI’s ‘Quarterly statistics on deposits and credit of SCBs: June 2021’.

The aggregate deposits growth (y-o-y) stood at 10 per cent in June 2021 compared to 11.5 per cent a year ago.

In this case too, deposit accretion in private sector banks grew at a faster pace vis-a-vis their public sector counterparts.

RBI also said the share of current account and savings account (CASA) deposits in total deposits increased further to 43.8 per cent in June 2021 as against 42 per cent in the year-ago period.

Also, as deposit growth outpaced credit growth, the all-India credit-deposit (C-D) ratio moderated to 70.5 per cent in June 2021. The C-D ratio declined for all bank groups, except for regional rural banks.