CREDIT GROWTH IMPROVING MAY 2022

 

Credit growth: Private banks see 15.1% rise, 7.8% in PSBs

However, aggregate deposits growth moderated to 10.2 per cent in March 2022 (12.3 per cent a year ago). Deceleration in deposit growth was observed across all bank groups, the RBI said.

Private sector banks maintained double-digit growth in credit (y-o-y) which accelerated in successive quarters to reach 15.1 per cent in March 2022, as per the latest Reserve Bank of India (RBI) data.

“Growth in lending by public sector banks (PSBs) improved significantly to 7.8 per cent in March 2022 from 3.6 per cent a year ago,” the RBI said in its ‘Quarterly Statistics on Deposits and Credit of SCBs’. Private banks have been raising their market share in the total banking business in the last few years. It said bank credit growth rose steadily over the successive quarters of FY22 and moved to double digits in March 2022. Credit growth of the banking sector improved to 11.9 per cent as on May 6.

Metropolitan centres, which constitute a dominant share in total bank credit of s, recorded 9.7 per cent credit growth (year-on-year) in March 2022 (1.7 per cent a year ago); credit growth in urban, semi-urban and rural centres remained in double digits in all quarters of 2021-22,” it said.

However, aggregate deposits growth moderated to 10.2 per cent in March 2022 (12.3 per cent a year ago). Deceleration in deposit growth was observed across all bank groups, the RBI said.

The share of current account and savings account (CASA) deposits in total deposits rose marginally and it stood at 45.1 per cent in March 2022. CASA deposits had 55.6 per cent share in incremental deposits during 2021-22, the central bank said. Further, the all-India credit-deposit (C-D) ratio improved marginally to 71.9 per cent in March 2022 (71.5 per cent a year ago), it added.