Home / Business / Money / June credit growth at 20-yr low, decelerated to 10.6%: RBI

June credit growth at 20-yr low, decelerated to 10.6%: RBI

According to the reports, growth in aggregate deposits and gross bank credit decelerated to 10.6 percent and 8.6 percent, respectively, in June 2015 from 11.9 percent and 12.9 percent, respectively, a year ago.

The Reserve Bank of India released its quarterly statistics on credit and deposits of all scheduled commercial banks in India. The report shows that banks’ credit growth has fallen to a 20-year low.

According to the report, growth in aggregate deposits and gross bank credit decelerated to 10.6 percent and 8.6 percent, respectively, in June 2015 from 11.9 percent and 12.9 percent, respectively, a year ago.

This follows a slowdown in demand for fresh credits from corporates, which even if there is any, comes only from brownfield and not greenfield projects.

With corporates sidelining banks and going through commercial paper work in a bid to raise funds, RBI governor has questioned using only credit growth as an indicator for economic growth.

Meanwhile, the all India credit-deposit (C-D) ratio was 75.8 percent as on June 26, 2015. Public sector banks accounted for the largest share of 72.5 percent in aggregate deposits and 70.4 percent in gross bank credit followed by private sector banks (19.8 percent and 20.6 percent, respectively) as on June 26, 2015.

Leave a Reply

Scroll To Top