RBI: Bank credit growth decelerates to 5.7% in June 2020 quarter

The central bank pointed out that moderation was across all bank groups

Oct 16, 2020 05:10 IST India Infoline News Service

The Reserve Bank of India (RBI) has announced outstanding credit of scheduled commercial banks (SCBs) for the quarter ending June 2020.

RBI said, bank credit growth (yoy) decelerated for the sixth successive quarter and stood at 5.7% in June 2020. Adding the central bank pointed out that moderation was across all bank groups.

On sector-wise performance, RBI said, industrial credit contracted by 0.6% (yoy) in June 2020 and its share in overall credit declined to 30.8% from 32.8% a year ago; credit to the household sector, on the other hand, increased by 9.0% (yoy) and its share in total credit rose to 50.2% from 48.7% a year ago.

Further, RBI highlighted that the weighted average lending rate (WALR) on outstanding credit declined by 25 basis points during the quarter ended June 2020 and by 55 basis points over the last one year.

RBI captures various characteristics of bank credit such as occupation/activity and organisational sector of the borrower, type of account, and interest rates. Data covering 1,25,686 branches of 90 SCBs (excluding Regional Rural Banks) are presented for bank groups, population groups and states.

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