Bank Credit Growth Slips to Single Digit First Time This Fiscal Year: RBI

Mumbai: For the first time this fiscal, bank credit growth slowed to single digit, printing in at a low 8.79 percent at Rs 97.71 lakh crore in the fortnight to September 27, according 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 percent to Rs 97.01 lakh crore.

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

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

Loans to agriculture & allied activities increased 6.8 percent in August compared to an increase of 6.6 percent last year same month.

Credit growth to the services sector decelerated to 13.3 percent in August from 26.7 per cent.

Personal loans growth moderated to 15.6 percent 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 percent in August from 1.9 percent in August 2018.

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