Credit offtake, deposits gain impetus during fortnight to Sep 29: RBI
INDIAN Banks continued to witness pick in both credit offtake and deposits during the fortnight ended on September 29, 2017, according to the Reserve Bank India.
The fortnightly data of all scheduled and commercial banks released on Thursday showed bank credit offtake grew by 2.86 per cent to Rs 82.54 trillion compared to Rs 80.25 trillion reported in the previous fortnight.
Credit offtake jumped 6.9 per cent compared to Rs 77.22 trillion a year ago, indicating improvement in credit demand.
In case of bank credit offtake, demand for loans, cash, credit and overdraft improved 2.7 per cent to Rs 80.31 trillion during fortnight period and have gained 6.96 per cent compared to year ago period. These loans account for 97.3 per cent of total bank credits.
Credit growth remained subdued in recent quarters in an environment of muted private sector investment. In addition, increased levels of disintermediation have also hurt demand for bank credit. During the period, total deposits (other than from banks) gained 2.4 per cent to Rs 112.59 trillion as compared to Rs 109.98 trillion in the previous fortnight. Deposits are 8.65 per cent higher compared to Rs 103.62 trillion a year ago.
Among deposits, the demand deposits rose 10.5 per cent to Rs 12.73 trillion during fortnight period and are 19.4 per cent higher compared to year ago period. Time deposits that account for 90 per cent of total deposits edged up 1.41 per cent to Rs 99.85 trillion during fortnight period and have grown 7.41 per cent as compared to year ago.
As the re-monetisation process nearing completion, the deposits are finding its way in other avenues. Last year, the government announced demonetisation by cancelling high currency notes to arrest black money.
Meanwhile, banks' investment in the central as well as the state government securities edged up by 16.9 per cent to Rs 34.28 trillion as on Sep 29 from Rs 29.33 trillion a year ago.