BANK credit grew 5.49 per cent to Rs 102.11 lakh crore, while deposits increased 10.92 per cent to Rs 141.76 lakh crore in the fortnight ended August 28, according to RBI data. In the fortnight ended August 30, 2019, banks’ advances were at Rs 96.80 lakh crore and deposits stood at Rs 127.80 lakh crore. In the previous fortnight ended August 14, 2020, bank credit and deposits had grown by 5.52 per cent and 11.04 per cent to Rs 102.19 lakh crore and Rs 140.80 lakh crore, respectively.
On a year-on-year (y-o-y) basis, non-food bank credit grew at 6.7 per cent in July as against a growth of 11.4 per cent in the same month last year, according to the data on sectoral deployment of bank credit for July 2020, released recently by RBI. Growth in loans to industry slowed to 0.8 per cent in July as compared to 6.1 per cent earlier, the data showed.
Advances to agriculture and allied activities registered a growth of 5.4 per cent in the reporting month as against 6.8 per cent growth in the same period last year. Credit to the services sector grew 10.1 per cent in July 2020 as against 15.2 per cent earlier. Personal loans continued to perform well, registering a growth of 11.2 per cent as compared to 17 per cent increase in July 2019. Within this sector, vehicle loans registered accelerated growth of 8.1 per cent as compared to 4.9 per cent in July 2019, according to the data.