Bank credit growth slips to single-digit low of 8.79% first time this year, reveals RBI data

Mumbai: For the first time this fiscal, bank credit growth slowed to single-digit, printing in at a low 8.79 percent at Rs 97.71 lakh crore in the fortnight to 27 September, according the latest data from the Reserve Bank. In the year-ago fortnight, the advances had stood at Rs 89.82 lakh crore. In the previous fortnight ending 13 September, bank credit had grown 10.26 percent to Rs 97.01 lakh crore. [caption id="attachment_6221211" align="alignleft" width="380"]

Representational image. Reuters.[/caption]Deposits growth too slowed to 9.38 percent to Rs 129.06 lakh crore from Rs 118 lakh crore a year ago, the RBI said, adding deposits had grown 10.02 percent in the fortnight to 13 September. On annualized basis, non-food credit growth decelerated to 9.8 percent in August 2019 from 12.4 percent in August 2018. Loans to agriculture and allied activities increased 6.8 percent in August compared to an increase of 6.6 percent last year same month. Credit growth to the services sector decelerated to 13.3 percent in August from 26.7 percent. Personal loans growth moderated to 15.6 percent in August 2019 from 18.2 percent in August 2018. However, advances to the industry accelerated during the reporting period more than doubling by 3.9 percent in August from 1.9 percent in August 2018.