Credit off­take, de­posits gain im­pe­tus dur­ing fort­night to Sep 29: RBI

Financial Chronicle - - PLAN, POLICY - LAXMIKANT KHANVILKAR MUM­BAI (Tick­erNews Ser­vice)

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.

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