Credit, deposit growth loses momentum

Bank credit and deposits slowed to 9.92 per cent and 12.31 per cent at Rs 96.52 lakh crore and Rs 125.40 lakh crore, respectively, for the fortnight ending June 7, according to the RBI data.

Mumbai: Both bank credit and deposits slowed to 9.92 per cent and 12.31 per cent at Rs 96.52 lakh crore and Rs 125.40 lakh crore, respectively, for the fortnight ending June 7, according to the RBI data.

In the year-ago fortnight, bank credit was at Rs 85.94 lakh crore while deposits were at Rs 114.08 lakh crore. In the previous fortnight ending May 24, advances grew 12.70 per cent to Rs 96.22 lakh crore and deposits increased 10.09 per cent to Rs 124.98 lakh crore.

Non-food credit increased 11.9 per cent in April from 10.7 per cent in April 2018. Loans to agriculture and allied activities rose 7.9 per cent in April compared to 5.9 per cent growth in the same month of 2018.

Advances to the services sector expanded 16.8 per cent compared to an increase of 20.7 per cent in April 2018.

Personal loans growth slowed to 15.7 per cent from 19.1 per cent during the reporting month.

Credit to the industry rose 6.9 per cent in April as against a meagre 1 per cent growth in the year-ago period.