Bank credit growth eases to 16.8% in December quarter: RBI data

In the year-ago period, bank credit growth was 8.4 percent.

Banks’ lending growth dropped to 16.8 percent in the December quarter from 17.2 percent in the prior quarter, according to statistics from the Reserve Bank of India (RBI’s “Quarterly” Statistics on Deposits and Credit of SCBs: December 2022).

Bank credit increased by 8.4 percent year over year.


The growth in credit was led by bank branches in metropolitan areas, which account for nearly 60 percent of total credit by scheduled commercial banks (SCBs) and recorded a 17.2 percent increase in lending year on year; urban, semi-urban, and rural areas also saw double-digit credit growth, according to the RBI.

The central bank gathers this information from all SCBs using the basic statistical return (BSR)—7 system1—and statistics on bank credit and deposits are disaggregated by region, population group, and bank group level.

Although public sector banks raised their loan portfolio by 15.7 percent in calendar year 2022 (compared to 4.7 percent in calendar year 2021), private sector banks increased their credit portfolio by 19.1 percent (13.1 percent a year ago).

In the December quarter, aggregate deposits increased by 10.3 percent year over year. Term deposits increased by 13.2 percent, while current and savings accounts increased by 4.6 percent and 7.3 percent, respectively.

Deposit mobilisation by public banks increased by 8.8 percent year over year in the December quarter.

The all-India credit-deposit (C-D) ratio climbed further to 75.9 percent in December 2022 (74.8 percent in the previous quarter and 71.6 percent in December 2021), with Andhra Pradesh, Maharashtra, Tamil Nadu, and Telangana remaining above 100 percent.