Bank credit jumps 12.44 pct, deposits up 8.15 pct: RBI

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New Delhi, Aug 5: Bank credit grew by 12.44 per cent to Rs 86,13,164 crore in the fortnight to July 20, according to the RBI data. In the year-ago period, bank credit had stood at Rs 76,59,898 crore. Growth in advances during the reporting period was marginally lower than the increase registered in the fortnight to July 6, when loans increased by 12.78 per cent to Rs 86,60,069 crore.
During the reporting fortnight, deposits increased by 8.15 per cent to Rs 1,14,38,121 crore from Rs 1,05,75,615 crore a year ago, according to the data. Despite the growth, the pace was slower than that in the last fortnight ended July 6, 2018, when they had risen 8.33 per cent to Rs 1,14,85,768 crore. In June 2018, the non-food bank credit rose 11.1 per cent as against a rise of 4.8 per cent in the same month last year.
Loans to agriculture and allied activities slowed 6.5 per cent in June, compared to an increase of 7.5 per cent in June 2017. Personal loan segment saw a growth of 17.9 per cent in June, up from an increase of 14.1 per cent last June.
During the reporting month, advances to the industry rose 0.9 per cent compared to a contraction of 1.1 per cent in June 2017. “Credit to major sub-sectors such as textiles, all engineering, food processing, chemical and chemical products, and cement and cement products accelerated,” the apex bank said.
However, loans to basic metal and metal products, construction and gems and jewellery contracted in June 2018. The services sector witnessed a major increase in loans to the tune of 23.3 per cent compared to an increase of 4.7 per cent in June 2017.