Mumbai: Banks’ loans rose 6.13 percent to Rs 101.04 lakh crore for the fortnight ended February 28. This information has been given in the latest data of the Reserve Bank. Deposits in banks increased by 9 percent to Rs 133.31 lakh crore during this period.
The loan given by banks at the end of the fortnight ended March 1, 2019, a year ago was Rs 95.20 lakh crore and the deposits amounted to Rs 122.30 lakh crore. In the previous fortnight ended February 14, 2020, banks’ loans grew by 6.36 per cent to Rs 100.41 lakh crore and deposits grew by 9.2 per cent to Rs 132.35 lakh crore.
Credit growth of banks declined to 8.5 percent in January 2020, from 13.5 percent in the year-ago period. The growth rate of credit declined due to low credit to the services sector. During this period, the growth rate of credit to service sector was 8.9 percent, which was 23.9 percent in January 2019. Personal loan growth in the month under review remained steady at 16.9 percent.
According to the Reserve Bank data, the growth of home loans under personal loans was 17.5 percent. Home loan growth was 18.4 percent in the same period a year ago. Education loans declined by 3.1 percent. Education loan was reduced by 2.3 percent in January 2019. During the period under review, credit growth to agriculture and allied activities sector was 6.5 per cent, compared to 7.6 per cent growth in the same period a year ago. Similarly, the growth rate of loans given to industries came down to 2.5 percent. It increased by 5.2 percent in the same period a year ago.