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Bank credit grows 5.4% in Sept quarter

Credit growth for metropolitan branches, which have major share in bank credit, decelerated to 3.3 per cent year-on-year in September 2020 quarter as compared to 4.7 per cent in April-June

twitter-logoPTI | January 3, 2021 | Updated 20:02 IST
Bank credit grows 5.4% in Sept quarter
RBI on Friday released Quarterly Basic Statistical Returns (BSR)-1: Outstanding Credit of Scheduled Commercial Banks (SCBs), September 2020

Bank credit growth on a year-on-year basis stood at 5.4 per cent in September quarter of the current fiscal year compared to 5.7 per cent growth in the previous quarter, RBI data showed. Credit growth for metropolitan branches, which have major share in bank credit, decelerated to 3.3 per cent year-on-year in September 2020 quarter as compared to 4.7 per cent in April-June.

It however improved for the bank branches in rural, semi-urban and urban areas, according to the data released by the Reserve Bank of India (RBI). RBI on Friday released Quarterly Basic Statistical Returns (BSR)-1: Outstanding Credit of Scheduled Commercial Banks (SCBs), September 2020.

It captures various characteristics of bank credit such as occupation/activity and organisational sector of the borrower, type of account, and interest rates. Data covering 1,26,580 branches of 89 scheduled commercial banks (excluding Regional Rural Banks) are presented for bank groups, population groups and states.

Personal loans, which accounted for one-fourth of bank credit, continued to maintain double-digit growth during September quarter. Industrial credit, on the other hand, contracted by 1.7 per cent (year-on-year) and its share in total credit stood at nearly 30 per cent in September quarter 2020, it said.

Bank loans to private non-financial companies continue to contract year-on-year for the fourth successive quarter and stood at (-) 6.7 per cent in September quarter reflecting tepid demand conditions, the data showed. Weighted average lending rate (WALR) for outstanding credit declined by 21 basis points during July-September 2020, RBI said.

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