Bank credit grew 6.36 per cent to Rs 106.41 lakh crore, while deposits increased by 11.41 per cent to Rs 146.25 lakh crore in the fortnight ended January 15, RBI data showed. In the fortnight ended January 17, 2020, bank credit was at Rs 100.04 lakh crore and deposits stood at Rs 131.27 lakh crore.
In the previous fortnight ended January 1, 2021, the year-on-year growth in bank credit was 6.7 per cent and 11.5 per cent in deposits, the data showed. During the first nine months of the current fiscal, bank credit rose by 3.2 per cent and deposits by 8.5 per cent.
In December 2020, non-food credit growth of banks stood at 5.9 per cent as compared to 7 per cent in the same month of the previous year, RBI data on Sectoral Deployment of Bank Credit – December 2020, released last week, showed. Loans to industry contracted by 1.2 per cent as compared to 1.6 per cent growth in December 2019, mainly due to decline in credit to large industries by 2.4 per cent during the reporting month as against 1.8 per cent growth a year ago.
Growth in credit to agriculture and allied activities accelerated to 9.4 per cent from 5.3 per cent in December 2019. Personal loans registered a decelerated growth of 9.5 per cent in the reporting month as compared to 15.9 per cent growth in December 2019.
Growth in advances to the services sector accelerated to 8.8 per cent in December 2020 from 6.2 per cent in December 2019 mainly on the back of acceleration in credit growth to transport operators and trade, the data showed.