Bank Credit Growth Remains Sluggish at 9.7%

Mumbai: Credit growth of commercial banks continued to remain weak with a growth of just 9.7 per cent at Rs 61,46,526 crore for the fortnight to September 19, according to the RBI data.

Bank credit was Rs 56,02,021 crore in the corresponding period last year. This was for the second consecutive fortnight that the credit growth came at sub-10 per cent.

Bankers have expressed concerns over sluggish credit demand and appear reluctant to cut lending rates.

Recently, HDFC Bank managing director and CEO Aditya Puri said both the lending and deposit rates are a function of credit demand and "currently it is not exceedingly healthy".

Deposits grew 13.33 per cent to Rs 81,06,633 crore in the fortnight to September 19 as compared with Rs 71,50,374 crore in the year-ago period.

Demand deposit expanded 12.40 per cent to Rs 7,36,751 crore as of September 19 from Rs 6,55,428 crore in the same period a year ago.

Time deposit rose 13.47 per cent to Rs 73,69,898 crore as against Rs 64,94,947 crore in the same period last year.