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This article is more than 1 month old.

Banking sector continues to see uptick in loan growth; non-food credit growth rate best since January 2020

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Deposits continue to outpace advances growth, thereby, we are witnessing lower credit-deposit ratio in the banking sector (at 70.6 percent).

Banking sector continues to see uptick in loan growth; non-food credit growth rate best since January 2020
Banking sector has continued to see uptick in loan growth, with non-food credit growth rate being the best since January 17, 2020. On the other hand, however, M3 or money supply growth rate has declined to 9.17 percent YOY, perhaps, the slowest growth rate since April 10, 2021.
Deposits continue to outpace advances growth, thereby, we are witnessing lower credit-deposit ratio in the banking sector (at 70.6 percent).
Here are the details of growth rate for reference:
On a fortnight basis:
Deposits are up 1.09%(-1.68% last fortnight)
Demand deposits are up 2.6%(-7.72% last fortnight)
Time deposits are up 0.9%(-0.83% last fortnight)
Food credit is up 4.88%(+7.22% last fortnight)
Non-food credit is up 0.93%(+-0.06% last fortnight)
Overall credit is up 0.96%(-0.01% last fortnight)
Year-to-date (YTD):
Deposits are up 5.55%
Demand deposits are up 0.37%
Time deposits are up 6.28%
Food credit is up 41.11%
Non-food credit is up 2.68%
Overall credit is at +2.9%
YOY:
Deposits at Rs 1,59,52,043 crore, up 9.32%YOY                (Last fortnight was at +9.8%YOY)
Advances were at Rs 1,12,69,069 cr, up 7.28%YOY  (Last fortnight was at +6.97%YOY)
Food credit is down 9.88%YOY & non-food credit is up 7.44%YOY
Non-Food credit growth, at +7.44%YOY, best growth since 17th Jan’20
Credit-deposit ratio, meanwhile, remained low at 70.64 percent vs 70.74 percent fortnight ago.
On the other hand, the year-to-date (YTD) credit growth seen in first week of December 21, is the best YTD growth seen in last 3 years.
1st week of Dec, year-to-date
20191.68%
20201.29%
20212.90%
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