Finally, bank credit growth moves into double-digits in Q2: RBI data

In the September quarter, bank credit had grown at 6.5% while in the June quarter, it was up by 8%.

New Delhi: According to the latest RBI data, after five quarters of low growth, bank credit resumed double-digit growth at 10.7 percent in the quarter to December, led by private sector banks.

In the September quarter, bank credit had grown at 6.5 percent while in the June quarter, it was up by 8 percent.

"Bank credit revived across all population groups and resumed double-digit growth after five quarters. The recovery was led by private sector banks and supported by public sector banks," RBI said in its quarterly statistics on deposits and credit on Tuesday.

Aggregate deposits of lenders moderated for the second successive quarter at 4.1 percent as against 8.2 percent in September and 12.6 percent in the June quarter.

Among banks, deposit accumulation by public sector banks and RRBs was minimal, whereas private sector banks continued to maintain double-digit growth and deposits with foreign banks recorded positive growth after four quarters.

Branches and offices in metropolitan cities accounted for nearly 57 percent of banking business during the quarter. Seven states — Maharashtra, Delhi-NCR, Tamil Nadu, Karnataka, UP, Gujarat and Bengal accounted for over two-thirds of deposits as well as credit pick-up.

The pick-up in credit growth helped in improving banking system's credit-deposit ratio to 75.1 percent at end-December 2017 from 73.3 percent a quarter ago. 

(With PTI inputs)