Deposit growth of scheduled commercial banks slowed in June: RBI
02 September 2016
Aggregate deposits with scheduled commercial banks in India grew at a slower pace of 9.2 per cent year-on-year in June this year compared to a growth rate of 10.6 per cent the year before. Gross bank credit increased by 9.4 per cent in June 2016 compared to an increase of 8.6 per cent in the year ago period, RBI data showed.
Credit growth increased for State Bank of India and its associates year-on-year compared to private banks and regional rural banks during the quarter.
The deceleration in the growth of deposits was broad-based across all population groups, mainly contributed by the public sector banks. However, these banks continued to maintain their dominant position by accounting for 70 per cent of total deposits.
Term deposits constituted the highest share (65.5 per cent) in aggregate deposits followed by saving deposits (27.2 per cent) and current deposits (7.3 per cent).
According to the size of total business (deposits plus credit) of SCBs, seven states, viz, Maharashtra, NCT of Delhi, Tamil Nadu, Karnataka, Uttar Pradesh, West Bengal and Gujarat accounted for 68 per cent of the total business. Maharashtra alone contributed 25 per cent of the total. These seven states together accounted for 66 per cent of deposits and 72 per cent of credit, at all-India level.
At all-India level the C-D ratio of all SCBs stood at 75.9 per cent as of 24 June 2016. Among the 36 states/union territories, 6 states/ union territories had C-D ratios higher than the all-India level. The C-D ratio was the highest for Tamil Nadu (113.2 per cent) followed by Chandigarh (104.3 per cent), Andhra Pradesh (104.0 per cent), Telangana (102.2 per cent), Maharashtra (99.9 per cent) and NCT of Delhi (91.6 per cent) while the C-D ratio for public sector banks was at 72.5 per cent, it stood at more than 80 per cent for private sector and foreign banks.