Credit growth of banks stood at 17.2 percent in September quarter: RBI

Ahmedabad: Bank credit increased by 17.2 percent year-on-year in the July-September quarter. Bank credit growth was seven percent in the same quarter a year ago. An increase in bank credit indicates an increase in the economic activity of an economy.

Releasing quarterly data on deposits and loans of public sector banks for September-2022, the Reserve Bank of India said credit growth remained balanced. All population groups and bank groups recorded more than 10 percent growth in credit during September, 2022.

This data is collected from all Scheduled Commercial Banks. It includes regional rural banks, small finance banks and payments banks. According to RBI data, loans increased by 17.2 percent in the September quarter. Loan growth was 14.2 percent in the previous April-June quarter. At the same time, the figure was seven percent in the same quarter a year ago.

According to the data, total deposit growth has been in the range of 9.5 and 10.2 percent annually since June 2021. However, in September 2022, it was 9.8 percent. Compared to rural, semi-urban and urban areas, bank branches in metropolitan areas have been recording higher year-on-year growth since December 2020.

The RBI said private sector bank groups are outpacing public sector banks, foreign banks and regional rural banks in adding deposits. According to the data, fixed deposit growth stood at 10.2 percent year-on-year in September, 2022, as against 6.4 percent in the same period a year ago. However, the growth of current and savings deposits declined to 8.8 percent and 9.4 percent from 17.5 percent and 14.5 percent respectively a year ago.

The share of savings deposits in total deposits declined modestly to 34.7 percent in the latest quarter, RBI said. It increased from 32.4 percent in June 2019 to a high of 35.2 in June 2022.