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
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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