After slipping to historic-lows, scheduled commercial bank credit seems to be finally looking to be recovering and were up for the fortnight ended June 9, 2017. According to latest data from the Reserve Bank of India (RBI), banks’ credit growth inched up to 6.02%. In volume terms, it grew from Rs 72,22,939 crore as on June 10, 2016 to Rs 76,58,212 as on June 10, 2017, slightly higher than the previous fortnight ended May 26, when advances grew over 5.08% with an outstanding of Rs 75,93,546 crore.
For several quarters, credit growth has been flat, as both corporate and banks are mired in the twin balance sheet problem and due to over-leverage, borrowing and lending has come to a naught. In the fiscal ended March 31, 2017, bank credit growth plunged to a multi-year low of 5.08% with an outstanding loan book of Rs 78.81 lakh crore as against Rs 75.01 lakh crore as on April 1, 2016.
As per the data, in the reporting fortnight, bank deposits grew by 11.19% to Rs 105,77,947 crore from Rs 95,13,148 crore in the fortnight ended June 10, 2016. Deposits in the fortnight ending on May 26 grew by 10.9% to Rs 105,51,182 crore from Rs 95,14,087 crore in the period ended May 27, 2016.
