Indian banks recorded a six percent growth on a year- on- year basis in June 2021 as against 6.4 percent growth a year ago, the Reserve Bank of India (RBI) said in the Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks on August 31.
Bank branches in urban, semi-urban and rural centres recorded double-digit credit growth but it moderated for metropolitan branches to 2.7 percent (5.1 percent a year ago), the central bank said. Growth on a year-on-year basis in credit by private sector banks (10.1 percent) was much higher than that for public sector banks (3.1 percent), the data showed.
Aggregate deposits growth, on a year-on-year basis stood at 10 percent in June 2021 compared with 11.5 percent a year ago while deposit accretion in private sector banks grew at a faster pace vis-a-vis public sector banks, the data showed.
Also, the share of current account and savings account (CASA) deposits in total deposits increased further to 43.8 percent in June 2021 compared with 42 percent a year ago, the RBI data showed. As deposit growth outpaced credit growth, the all-India credit-deposit ratio moderated to 70.5 per cent in June 2021 compared with 73.1 per cent a year ago, the RBI said.The credit growth across sectors slumped due to falling demand after the COVID-19 pandemic hit the Indian economy. However, the government’s initiatives to push credit to the productive sectors through government-guaranteed schemes have helped create demand.