Bank credit grows 5.7% in June quarter: RBI data

AgenciesUpdated: Wednesday, October 14, 2020, 11:32 PM IST
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Reserve Bank of India (RBI) | PTI

Bank credit growth decelerated on a year-on-year basis for the sixth successive quarter and stood at 5.7 per cent in the three months to June 2020, according to the Reserve Bank data.

During the quarter, moderation in advances was witnessed across all bank groups. Industrial credit contracted by 0.6 per cent y-o-y in June and its share in overall advances declined to 30.8 per cent from 32.8 per cent a year ago, according to the data on Outstanding Credit of Scheduled Commercial Banks for June 2020, released by the RBI.

Credit to the household sector increased by 9 per cent and its share in total credit rose to 50.2 per cent from 48.7 per cent a year ago.

The weighted average lending rate (WALR) on outstanding credit declined by 25 basis points during the quarter ended June 2020 and by 55 basis points over the last one year, the data showed.

The data captures various characteristics of bank credit such as occupation/activity and organisational sector of the borrower, type of account and interest rates. Data covering 1,25,686 branches of 90 scheduled commercial banks (excluding Regional Rural Banks) are presented for bank groups, population groups and states, RBI said.

Separately, a RBI release on 'Deposits with Scheduled Commercial Banks- March 2020' showed that the household sector (including proprietor/ partnership firms) held the dominant share (63.5 per cent) in total deposits, followed by non-financial corporations, general government, rest of the world and financial corporations.

Individuals (including Hindu Undivided Families (HUFs)), who are major constituents of the household sector, accounted for 55.6 per cent share in total deposits in March 2020, it showed.

The share of deposit accounts held by females has been increasing over the years and stood at 32.0 per cent in March 2020 (20.8 per cent in March 2010), the data showed.

Amidst general decline in interest rates, the share of term deposits bearing less than 7 per cent interest rate increased to 65.7 per cent in March 2020, as against 46 per cent a year ago, the data showed.

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