Bank credit grew 5.52 per cent to Rs 102.19 lakh crore and deposits increased 11.04 per cent to Rs 140.80 lakh crore in the fortnight ended August 14, according to RBI data. In the year-ago period, bank credit stood at Rs 96.84 lakh crore and deposit at Rs 126.8 lakh crore, respectively.
In the previous fortnight ended July 31, 2020, bank credit grew 5.51 per cent while deposits witnessed a growth of 11.11 per cent. On a year-on-year (y-o-y) basis, non-food bank credit growth was at 6.7 per cent in June, nearly the same as in May. However, it was lower than the growth of 11.1 per cent in June 2019.
Growth in credit to agriculture and allied activities rose 2.4 per cent in June as compared to 8.7 per cent rise in the same month of 2019.
As per the data, growth in loans to industry grew 2.2 per cent in June this year compared to 6.4 per cent growth in June 2019. Credit to large industries increased 3.7 per cent as against 7.6 per cent. Credit to the services sector continued to grow at a robust, albeit decelerated, rate at 10.7 per cent in June 2020 vis-a-vis 13 per cent in June 2019.
Personal loans continued to perform well registering a growth of 10.5 per cent in June, nearly the same as in May but lower than 16.6 per cent growth in June 2019.