BANK CREDIT AND DEPOSIT RATES RISE
Recent news from Reserve Bank of India (RBI), bank credit grew by 6.74% and deposits grew by 9.82% respectively as on April, 2020.
Earlier Bank Loans estimated at about Rs 96.20 lakh crores and deposits at Rs 124.83 lakh crores that grew by Rs 102.69 lakh crores and Rs 137.11 lakh crores respectively in April, 2020.
Putting a glance at the condition in March, 2020 bank loans had declined nearly by 6.14% due to slow economic growth.
In March, 2020 non- food bank credit growth declined to 6.7% from 12.3% due the decline in advances by banks to industries and service sectors. Loan growth in the service sectors also declined to 7.4% in March 2020 as compared to 17.8% in March 2019.
Credit growth to Non-Banking Financial Institutions (NBFCs) also declined to 25.9% in comparison to 29.2 % in March 2019.
However credit growth was identified in the following sectors:
- Beverages & Tobacco
- Mining & Quarrying
- Coal products
- Cement & Cement Products
- Transport & Transport related equipment’s.
As per the recent data from Reserve Bank of India (RBI), bank credit grew by 6.74% and deposits grew by 9.82% respectively as on April, 2020.