MUMBAI: After touching historic-lows, bank credit seems to be finally looking up. For the fortnight ended June 9, credit growth inched up to 6.02 per cent over the previous year, according to latest data from the Reserve Bank of India.
In volume terms, advances grew from Rs 72,22,939 crore as on June 9, 2016 to Rs 76,58,212 this fiscal. This is slightly higher than the previous fortnight ended May 26, when advances grew over 5.08 per cent with an outstanding of Rs 75,93,546 crore.
For several quarters, credit growth has been flat, as both corporate and banks are mired in the twin balance sheet problem and due to over-leverage, borrowing and lending has come to a naught.
It may be noted that for the fiscal ended March 31, 2017, bank credit growth had declined to a multi-year low of 5.08 per cent with an outstanding loan book of Rs 78.81 lakh crore as against Rs 75.01 lakh crore as on April 1, 2016.
During the fortnight under review, notwithstanding low interest rates, bank deposits increased by an impressive 11.19 per cent to Rs 1,05,77,947 crore from Rs 95,13,148 crore in the corresponding year-ago period. Deposits in the fortnight ended May 26, 2017 rose by 10.9 per cent to Rs 1,05,51,182 crore.