Bank advances grow 7.2%, deposits rise 9.45% in fortnight ended April 10

Bank credit and deposits grew by 7.20 per cent and 9.45 per cent to Rs 103.39 lakh crore and Rs 137.14 lakh crore, respectively in the first fortnight, which ended on April 10, of the current fiscal, according to the latest data from the Reserve Bank of India (RBI).

Mumbai: Bank credit and deposits grew by 7.20 per cent and 9.45 per cent to Rs 103.39 lakh crore and Rs 137.14 lakh crore, respectively in the first fortnight, which ended on April 10, of the current fiscal, according to the latest data from the Reserve Bank of India (RBI).

In the year-ago fortnight, bank advances had stood at Rs 96.44 lakh crore and deposits at Rs 125.30 lakh crore.

In the fiscal ended March 31, 2020, bank loans had decelerated to 6.14 per cent, a near five-decade low, due to slower economic growth, lower demand and as banks remained risk averse.

Loan growth in FY20 was the slowest since the fiscal ended March 31, 1962, when it had increased by 5.38 per cent.

During FY20, bank deposits grew by 7.93 per cent to Rs 135.71 lakh crore as against Rs 125.73 lakh crore, the RBI data showed.

When compared with the previous fortnight which ended on March 27, 2020, bank credit de grew by 0.3 per cent in the fortnight ended on April 10, 2020.

Similarly, the growth in deposits was just 1.1 per cent in the reporting fortnight when compared with the fortnight which ended on March 27, 2020, data showed.

(PTI Report)