RBI: Bank credit growth across all population at 6.3% in March 2020; private banks continue to lead

RBI's data further added, all bank groups recorded moderation in credit growth during 2019-20 though private sector banks continued to lead the growth.

Jul 16, 2020 09:07 IST India Infoline News Service

The Reserve Bank of India (RBI) has released the Quarterly Basic Statistical Returns (BSR)-1: Outstanding Credit of Scheduled Commercial Banks (SCBs) for March 2020 month. This data captures various characteristics of bank credit such as population group, occupation/activity and organisational sector of the borrower, type of account and interest rates.

According to RBI, the bank credit growth (Y-o-Y) continued to decelerate across all population groups and stood at 6.3% in March 2020; bank branches in rural areas, however, maintained double-digit growth.

RBI's data further added, all bank groups recorded moderation in credit growth during 2019-20 though private sector banks continued to lead the growth.

As of March 2020, outstanding credit amount of all SCBs stood at over Rs102.17 lakh cr, of which nearly Rs60,69,991cr was of public sector banks (PSB) and private banks had Rs36,12,994cr. Remaining outstanding credit was in foreign banks and small finance banks.

On sector-wise, RBI's data suggest that share of industrial credit in total bank credit declined to 31.5% in March 2020 (33.1% a year ago), as it recorded a meagre 0.9% growth (Y-o-Y) in March 2020.

While RBI stated that, overall credit expansion has been supported by robust growth in personal loans in the recent period: the share of individuals in total bank credit has increased to 40.1% in March 2020 (37.4% a year ago and 30.8% five years ago) whereas that of the private corporate sector has declined. Within individuals, the share of female borrowers has been consistently on the rise.

That said, the overall weighted average lending rate (WALR) on outstanding credit contracted by 17 basis points during the quarter ended March 2020.

RBI's data covers 1,24,984 bank branches of SCBs (excluding Regional Rural Banks). 

Related Story

Open Free Demat Account (Rs699)