‘Credit growth outpaced deposit growth for banks’

Credit growth outpaced deposit growth for commercial banks in June, the Reserve Bank of India (RBI) said in its quarterly statistics on deposit and credit of commercial banks for June 2022 released on Thursday. As credit growth is outpacing deposit growth in the recent period, credit-deposit (C-D) ratio has been on the rise: In June it stood at 73.5 per cent at the all-India level (70.5 per cent a year ago) and 86.2 per cent for metropolitan branches of banks (84.3 per cent a year ago), the RBI said.According to RBI, the credit growth (y-o-y) accelerated further to 14.2 per cent in June from 6 per cent a year ago and 10.8 per cent a quarter ago.Credit growth has been broad-based: All the population groups (i.e., rural, semi-urban, urban and metropolitan), all the bank groups (i.e., public/private sector banks, foreign banks, regional rural banks, small finance banks) and all the regions of the country (i.e., central, eastern, north-eastern, northern, southern and western) recorded double-digit annual credit growth in June, the RBI said.