The Reserve Bank of India recently released its statement mentioning that the net Bank credit rose by 5.73 percent to Rs. 105.04 lakh crore. The deposits have shown an 11.34 percent increase to Rs. 145.92 lakh crore. All the growth was noted in the fortnight that ended December 4. Comparing the current rates with that of the last year, in the fortnight that ended on December 6, 2019, the bank credit amount was at 99.35 lakh crore and the deposits were at Rs. 131.06 lakh crore thereby showing a clear image of where the bank credit stood and a prominent growth. In the earlier fortnight that ended on November 20, the credit increased by 5.82 percent to Rs. 104.34 lakh crore. The deposits simultaneously grew by 10.89 percent to Rs. 143.70 lakh crore.
The bank also revealed the growth rates for loans. The loans to agriculture and allied activities grew to 7.4 percent in December whereas the growth rate in the last year December was 7.1 percent. In the service sector too, the growth in loans was prominent. It showed an accelerated growth from 6.5 percent in October 2019 to 9.5 percent in October 2020. However, the growth in loans wasn’t constant. Concerning Personal loans, a drastic decline in growth rate was observed. From a whopping 17.2 percent growth in October 2019, the personal loan growth has gone way down to 9.3 percent in October 2020.
Furthermore, in October, the Credit to industry decreased by 1.7 percent. October 2019 had shown a growth in credit to the industry by 3.4 percent. The non-food credit growth also went through a downfall this year. As compared to last year’s 8.3 percent growth, this year the growth was at merely 5.6 percent. While some industries flourished, a lot of the industries showed a decrease in the growth rate.