Bank credit growth hit 14.2% in the June quarter


According to RBI statistics released on Thursday, bank credit growth increased from 6% in the same quarter last year to 14.2% in the quarter ending June 2022.

Bank credit grew 10.8% in the three months ending March 2022. On Thursday, the Reserve Bank of India (RBI) released the “Quarterly SCB Deposit and Loan Statistics for June 2022”. This information is collected from all Regular Commercial Banks (SCBs), which also include Small Finance Banks (SFBs), Regional Rural Banks (RRBs) and Payment Banks (PBs).

All population groups (rural, semi-urban, urban and metropolitan), all banking groups (public/private sector banks, foreign banks, RRB and SFB) and all geographical areas of the country (central, eastern, north- east, north, south and west) recorded double-digit annual credit growth in June 2022, the data showed.

Over the past five quarters, annualized deposit growth has been between 9.5% and 10.2%. Metropolitan branches continue to account for more than half of all bank deposits, and over the past year their proportion has increased slightly.

Over the last three years, the share of current and savings accounts (CASA) deposits in total deposits has increased (42% in June 2020, 43.8% in June 2021 and 44.5% in June 2022).

The statistics showed an increase in the credit-to-deposit (CD) ratio, as credit growth recently outpaced deposit growth. The CD ratio for all of India was 73.5% in June 2022 (compared to 70.5% a year earlier), while it was 86.2% for major city bank branches ( 84.3% a year ago).

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