Bombay: Bank credit growth slowed to 5.6 percent from 6.4 percent a year ago, according to data released by the Reserve Bank of India (RBI).
The combined credit of bank branches in the six major centers – Greater Mumbai, Delhi, Bengaluru, Chennai, Hyderabad and Kolkata – which together accounted for over 46% of total bank credit declined slightly in 2020-2021.
In contrast, bank branches in urban, semi-urban and rural areas recorded credit growth of 9.4%, 14.3% and 14.5%, according to the RBI’s quarterly statistics on deposits and credit. regular commercial banks.
Public and private sector banks recorded credit growth of 3.6% and 9.1% respectively, while loans from foreign banks declined in 2020-2021.
Growth in aggregate deposits accelerated to 12.3% in March, from 9.5% a year ago. Metro branches, which account for more than half of total deposits, grew by almost 15 percent.
The central bank said the share of current account and savings account (CASA) deposits in total deposits rose to 44.1% in March, from 42.1% a year ago.
The share of private sector banks in the total deposits and loans of regular commercial banks increased in 2020-2021 at the expense of public sector banks.
The RBI said weaker credit growth with respect to deposits led to a drop in all India’s credit deposit (CD) ratio to 71.5% in March, from 76% a year ago. a year.
Credit granting suffered in FY21 due to the outbreak of the COVID-19 pandemic as banks waived risk and tightened credit filters to focus on quality borrowers.