Bank deposit growth slows to 9.8% from 18-month high previous fortnight; credit growth eases

Date posted: Friday 15 March 2019

The growth in bank deposits at 9.8% year-on-year (y-o-y) in the fortnight ended March 1, 2019 was slower than the 10.2% y-o-y, reported in the fortnight to February 15, 2019.That was the highest in one-and-a-half years, in the previous fortnight, data from Reserve Bank of India (RBI) showed. Bank credit in India is expected to grow at 13-14% on average between FY19 and FY20, significantly faster compared with the 8% in FY18, which would force a change in the deposit mobilization plans of banks over the medium term. To meet this credit growth, banks will have to raise about Rs.25 lakh crore over the two fiscals. Outstanding loans to companies and individuals stood at Rs.94.73 lakh crore as on March 1, up from Rs.93.78 lakh crore on February 15 and Rs.82.73 lakh crore a year ago.

(Financial Express)

Tags: ,