In the first nine months of the current financial year, the bank credit rates saw a growth. A 3.2% growth to Rs. 107.05 lakh crore was witnessed. This is contrary to the growth rate of 2.7% that was recorded at the same time during the financial year 2019-20. It is estimated that the countrywide lockdown in the first half of 2020 has something to do with the growth rate differences. The 27 March 2020, fortnight showed that the bank advances remained at Rs. 103.72 lakh crore.
The Banks also registered a growth in the number of deposits. Due to the high financial instability, a lot of people turned their heads towards the banks and invested in deposits with more interest rates and high stability. The deposit rates rose to 8.5% by Rs. 147.27 lakh crore in the April-December 2020 quarter in place of the increase of 5.1 percent that was there in the last financial year. All these statistics were revealed in the data that the Reserve Bank of India put forward.
Bank credit growth levels have finally established stability and are getting back to the levels of pre-COVID times. The average bank credit growth was 6.5 percent. The Reserve Bank of India data also revealed that the fortnightly that ended on January 1, 2021, the bank credit had a year-to-year growth of 6.7 percent and 11.5 percent in deposits. The increase in retail loans led to this increase in bank credit growth. This was recorded as a high growth rate as compared to the fortnight that ended December 18, 2020.
If this growth rate is compared to that of exactly a year ago, it is not a good growth rate. The time of January 3, 2020, was at a growth rate of 7.5 percent. This reflected how the demand was decreased and the banking system is a little disrupted due to Covid-19.