According to figures released by the RBI on Thursday, bank credit growth increased to 14.2% in the quarter that ended in June 2022 from 6% in the same time the year before.
In the three months that ended in March 2022, bank credit had increased by 10.8%.
The “Quarterly Statistics on Deposits and Credit of SCBs for June 2022” were published by the Reserve Bank of India (RBI) on Thursday. All scheduled commercial banks (SCBs), including small financing banks (SFBs), regional rural banks (RRBs), and payments banks, provide this information (PBs).
“Credit growth has been broad-based: all the population groups (i.e., rural, semi-urban, urban and metropolitan), all the bank groups (i.e., public/private sector banks, foreign banks, RRBs and SFBs) and all the regions of the country (i.e., central, eastern, north-eastern, northern, southern and western) recorded double-digit annual credit growth in June 2022,” as per the data.
Over the past five quarters, annualised deposit growth has stayed between 9.5 and 10.2 percent.
Metropolitan branches continue to account for more over half of all bank deposits, and during the past year, their share has slightly increased.
Over the past three years, deposits from current and savings accounts (CASA) have become a larger portion of overall deposits (42 per cent in June 2020, 43.8 per cent in June 2021 and 44.5 per cent in June 2022).
The statistics showed that the credit-deposit (C-D) ratio has increased as credit growth has recently outpaced deposit growth.
In June 2022, the C-D ratio for all of India was 73.5 percent (compared to 70.5 percent a year earlier), while it was 86.2 percent for bank branches in major cities (84.3 per cent a year ago).
