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Business News/ Industry / Banking/  Bank credit growth slows to 6.3% for the fortnight ended 14 February
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Bank credit growth slows to 6.3% for the fortnight ended 14 February

Recently, at the Mint Annual Banking conclave RBI Governor highlighted that domestic credit growth continues to be a challenge for the banking sector

(Photo: Reuters)Premium
(Photo: Reuters)

Mumbai: Banking system credit grew by 6.3% to 99.68 lakh crore in the fortnight ended 14 February, according to Reserve bank of India’s statement of position.

In the similar fortnight last year, the advances stood at 93.78 lakh crore.

In the previous fortnight ended 31 January, bank credit has grown by 7.1% on an annual basis to 100.23 lakh crore.

Bank deposits in the fortnight ended 31 January, 2020 increased by 9.9% year on year to 133.24 lakh crore from 121.22 lakh crore a year ago, RBI data showed.

Recently, at the Mint Annual Banking conclave RBI Governor Shaktikanta Das highlighted that domestic credit growth continues to be a challenge for the banking sector. This along with slowdown in global growth on account of the impact of Corona virus outbreak also poses challenge to the system.

The recent measures announced in the Union Budget and by the RBI are expected to spur credit growth. In its February monetary policy review, RBI decided to make cheap money available to lenders, incentivize retail loans and provide a breather for loans to certain categories of builders. The central bank’s move to exempt banks from cash reserve ratio requirement for incremental credit to certain sectors for up to five years is expected to support lending. RBI also allowed extension of date of commencement of commercial operations (DCCO) of project loans for commercial real estate, delayed for reasons beyond promoters’ control, by another year.

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ABOUT THE AUTHOR
Gopika Gopakumar
Gopika Gopakumar has worked for over 15 years as a banking journalist across print and television media. Her expertise lies in breaking big corporate stories and producing news based TV shows. She was part of the 2013 IMF Journalism Fellowship Program where she covered the Annual & Spring meetings of the International Monetary Fund in Washington D.C. She started her career with CNBC-TV18, where she also produced a news feature show called Indianomics and an award winning show on business stories from South India called Up South. She joined Mint in 2016.
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Published: 27 Feb 2020, 08:41 PM IST
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