Bank credit grows by 14.19 per cent, deposits by 10.60 per cent: RBI data

Bank credit rose by 14.19 percent to Rs 96.45 lakh crore while deposits grew 10.60 percent to Rs 125.30 lakh crore in the first fortnight ended on April 12, according to recent RBI data. In the year ago fortnight, deposits were at Rs 113.29 lakh crore and advances stood at Rs 84.46 lakh crore.

In the fiscal ended March 2019, bank credit had risen by 13.24 percent and deposits grew by 10.03 percent. This was the second consecutive double-digits credit growth after the same had declined to 4.54 percent in FY17 at Rs 78.41 lakh crore, which was the lowest since 1963, the RBI data said.

On a year-on-year basis, non-food bank credit increased by 13.2 percent in February 2019 as compared with an increase of 9.8 percent in the year-ago period.

Loans to the services sector almost doubled with a 23.7 percent growth in February compared to 14.2 percent in the same month last year.

Advances to agriculture and allied activities increased by 7.5 percent in February compared to an increase of 9 percent in February 2018.

Credit to the industry rose by 5.6 percent in February, up from an increase of 1 percent in February 2018.

Credit to the infrastructure, chemical and chemical products, and all engineering sectors accelerated. However, credit growth to basic metal & metal products, textiles, and food processing decelerated/contracted.

Personal loans rose 16.7 percent in February down from 20.4 percent in February 2018, the RBI said.