Bank credit growth slips to single-digit first time this year

In the year-ago fortnight, the advances had stood at Rs 89.82 lakh crore. In the previous fortnight ending September 13, bank credit had grown 10.26 per cent to Rs 97.01 lakh crore.

Published: 11th October 2019 03:45 PM  |   Last Updated: 11th October 2019 03:45 PM   |  A+A-

Bank, Banks

For representational purposes (File Photo | PTI)

By PTI

MUMBAI: For the first time this fiscal, bank credit growth slowed to single-digit, printing in at a low 8.79 per cent at Rs 97.71 lakh crore in the fortnight to September 27, according to the latest data from the Reserve Bank.

In the year-ago fortnight, the advances had stood at Rs 89.82 lakh crore. In the previous fortnight ending September 13, bank credit had grown 10.26 per cent to Rs 97.01 lakh crore.

Deposits growth too slowed to 9.38 per cent to Rs 129.06 lakh crore from Rs 118 lakh crore a year ago, the RBI said, adding deposits had grown 10.02 per cent in the fortnight to September 13.

On annualized basis, non-food credit growth decelerated to 9.8 per cent in August 2019 from 12.4 per cent in August 2018.

Loans to agriculture & allied activities increased by 6.8 per cent in August compared to an increase of 6.6 per cent last year same month. Credit growth to the services sector decelerated to 13.3 per cent in August from 26.7 per cent.

Personal loans growth moderated to 15.6 per cent in August 2019 from 18.2 per cent in August 2018.

However, advances to the industry accelerated during the reporting period more than doubling by 3.9 per cent in August from 1.9 per cent in August 2018.

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