Credit growth in the banking sector stood at 14.12 percent as of March 22 on a year-on-year (yoy) basis compared to the Reserve Bank of India (RBI)’s target of 16 percent for 2012-13.
Similarly, bank deposits expanded 14.26 percent as of March 22 on a yoy basis, compared to the central bank’s comfort level of 15 percent.
As on March 22, total loans extended by the commercial banks amounted to Rs 52.6 lakh crore, up Rs 82,029 crore over the fortnight.
Bank deposit grew Rs 91,247 crore over the fortnight ending March 22 and it stood at Rs 67.5 lakh crore, data released by RBI shows.
The general slowdown in the economy resulted in muted demand for credit. Besides, investors are cautious as there are risks of a loan turning bad.
Media reports indicate that investors are opting for more lucrative avenues such as gold and real estate instead of depositing their savings in banks. But analysts feel that banks may, manage to meet RBI’s target for deposit growth in the week following March 22.
Banks often tend to do huge business in both lending as well as in raising deposits during the last few days of the financial year.
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