Bank credit grows 15%, deposits up 17%

Credit flows from commercial banks continued to lag deposit mobilisation, at 15 per cent year-on-year, by the first fortnight of December 2013, against a 17 per cent growth in deposits, due mainly to increased inflows from non-resident Indians. 

Commercial bank credit grew at 14.9 per cent year-on-year to Rs57,01,328 crore as of 13 December 2013, against Rs49,61,525 crore in the same period last year, according to latest RBI data.

With a slowing economy, credit demand remains weak. Most corporate credit offtake is for meeting working capital requirements.

The demand for retail loans remained steady while agricultural credit is expected to pick up during the fourth quarter during the rabi season.

Total deposits with scheduled commercial banks stood at Rs75,24,217 crore as of 13 December, against Rs64,30,998 crore during the same period last year, according to RBI data.

More money has flown into banks from the public after the festive season and the elections to the legislatures in five states.

Banks also raised $34 billion from NRIs in foreign currency deposits ((FCNR(B)), which is equivalent to Rs144,000 crore after swapping dollars with RBI.

The RBI's estimate bank credit to grow at around 15 per cent during the current fiscal (2013-14), with Deposit growth of 14 per cent.