The bank credits grew up to 3.2 percent to Rs 107.05 lakh crore in the first nine months of the current financial year, as opposed to a growth of 2.7 percent that was recorded in the corresponding period of 2019-20.
In the fortnight that ended on March 27, 2020, the bank advances stood at Rs 103.72 lakh crore.
Bank deposits were seen to rise by 8.5 percent to Rs 147.27 lakh crore in the quarter between the months of April to December in the 2020 period as opposed to the increase of 5.1 percent in 2020, according to the recent information gathered from the Reserve Bank of India, which works as the central bank in our country.
When the fortnight ended on January 1, 2021, the year-on-year growth in the bank credit was reported to be 6.7 percent and 11.5 percent in deposits according to the data released by The Reserve Bank of India.
In its recent report, CARE Ratings said that the bank credit growth was able to return to the levels that were kept under strict observation in the early months of the pandemic. The average bank credit growth in March and April last year was around 6.5 per cent.
The credit growth that the bank showed in the fortnight which ended January 1, 2021, was seen to increase compared to the last fortnight that ended on December 18, 2020.
Although, the credit growth remained disturbingly lower compared to the year-ago period, where the growth was around 7.5 percent as of 3rd January 2020, reflecting risk aversion in the banks.
Lenders are being seen as being selective with their credit portfolios as a result of the asset quality concerns according to the agency’s report.
The recent Financial Stability Report said that the gross non-performing assets of all banks might rise to 13.5 percent by the month of September this year, under a baseline stress scenario. This would be the highest in over 22 years, from the 7.5 percent in September 2020.