Bank Credit Growth went down to 6.3%

As per the Reserve bank of India’s statement of position, Banking system credit grew by 6.3% to ₹99.68 lakh crore in the fortnight ended 14 February.

On the same date last year, the advances were ₹93.78 lakh crore.

previous fortnight of 31 January, bank credit got increase by  7.1% on an annual basis to ₹100.23 lakh crore.

As per the data by RBI, On 31 January, 2020 Bank deposits were increased by 9.9% year on year to ₹133.24 lakh crore from ₹121.22 lakh crore a year ago.

Recently, at the Mint Annual Banking conclave RBI Governor Shaktikanta Das pointed out that the domestic credit growth is still a challenge for the banking sector. With the slow global growth and the impact of corona virus,  it became a challenge for the banking system.

The new measures which were announced by the RBI in the Budget may increase the credit growth. In its February monetary policy review, RBI took a decision to make the cheap money available for the banks. It also decided to incentivize retail loans and provide a breather for loans to certain categories of builders. The central bank’s move to exempt banks from cash reserve ratio requirement for incremental credit for five years will support lenders. RBI also allowed extension of date of commencement of commercial operations (DCCO) of project loans for commercial real estate, delayed for reasons beyond promoters’ control, by another year.