The banking sector continued to record an increase in loan growth, with the growth rate of non-food credit being the best since January 17, 2020. On the other hand, however, the growth rate of M3 or the Money supply fell to 9.17% year-on-year, perhaps, the weakest growth rate since April 10, 2021.
Deposits continue to outpace growth in advances, as a result, we are seeing a decline in the credit-to-deposit ratio in the banking sector (to 70.6%).
Here are the details of the growth rate for reference:
By fortnight:
| Deposits are up 1.09% | (-1.68% last fortnight) | ||
| Demand deposits are up 2.6% | (-7.72% the last fortnight) | ||
| Term deposits are up 0.9% | (-0.83% last fortnight) | ||
| Food credit is up 4.88% | (+ 7.22% last fortnight) | ||
| Non-food credit is up 0.93% | (+ -0.06% last fortnight) | ||
| Overall credit is up 0.96% | (-0.01% last fortnight) | ||
Year-to-date (year-to-date):
| Deposits are up 5.55% |
| Demand deposits are up 0.37% |
| Term deposits are up 6.28% |
| Food credit is up 41.11% |
| Non-food credit is up 2.68% |
| The overall credit is + 2.9% |
YO:
| Deposits at Rs 1.59.52.043 crore, up 9.32% yoy (last fortnight was + 9.8% yoy) | |||||
| Advances were at Rs 1,12,69,069 cr, up 7.28% over one year (the last fortnight was at + 6.97% over one year) | |||||
| Food credit is down 9.88% year on year and non-food credit is up 7.44% year on year | |||||
| Growth in non-food credit, at + 7.44% YOY, best growth since 17e January 20 | |||||
The loan-to-deposit ratio, meanwhile, remained low at 70.64% against 70.74% a fortnight ago.
On the other hand, the year-to-date credit growth (YTD) seen in the first week of December 21 is the best YTD growth seen in the past 3 years.
1st week of December, year-to-date
| 2019 | 1.68% |
| 2020 | 1.29% |
| 2021 | 2.90% |
(Edited by : Anshul)
First publication: STI
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