Bank credit growth decelerates to 15.1% in FY'13

Gross bank credit by scheduled commercial banks in the country grew at a lower pace of 15.1 per cent during the financial year ended 31 March 2013, compared to the 17.3 per cent growth in the year ended 31 March 2012, mainly on account of deceleration of bank credit in rural and metropolitan areas.

Aggregate deposits with scheduled commercial banks in India, however, improved marginally to 14.2 per cent at the end of March 2013, against a 13.8 per cent year-on-year growth recorded at the end of March 2012, data released by the Reserve Bank of India (RBI) showed.

The growth in deposits was mainly on account of deposits mobilised by urban branches, RBI data showed.

The top hundred banking centres, arranged according to the size of gross bank credit accounted for 77.2 per cent of gross bank credit and top hundred centres arranged according to the size of deposits accounted for 68.6 per cent of aggregate deposits.

About 49.8 per cent of the top 100 bank branches accounted for outstanding gross bank credit of Rs10 crore or more, 96.1 per cent of gross bank credit and 81.3 per cent of deposits.

About 71.5 per cent of the bank branches had deposits of Rs10 crore or more, 98.0 per cent of aggregate deposits and 96.0 per cent of gross bank credit.

Nationalised banks, SBI and its associates, and private sector banks accounted for 51.0 per cent, 22.7 per cent and 19.0 per cent of gross bank credit, respectively, and 52.4 per cent, 22.0 per cent and 18.7 per cent, respectively, of aggregate deposits with banks.

The credit-deposit (C-D) ratio of all scheduled commercial banks (SCBs) as of 31 March 2013 stood at 78.1 per cent.

At the bank group level, foreign banks had the highest C-D ratios of 96.7 per cent while new private sector banks and SBI and its associates had a C-D ratio of 80.4 per cent, which were higher than the all-India average.

The estimates are based on data on spatial distribution of aggregate deposits and gross bank credit of scheduled commercial banks, including regional rural banks (RRBs) based on basic statistical return as of 31 March 2013, RBI said.