Private sector banks maintained double-digit credit growth (year-on-year) which accelerated in successive quarters to reach 15.1% in March 2022, according to the latest data from the Reserve Bank of India ( RBI).
“Public Sector Banks (PSB) loan growth improved significantly to 7.8% in March 2022 from 3.6% a year ago,” the RBI said in its “Quarterly Statistics on SCB deposits and credit”. Private banks have increased their market share in all banking activities in recent years. He reported that bank credit growth has increased steadily in successive quarters of FY22 and grew into double digits in March 2022. Banking sector credit growth improved to 11.9% on May 6.
“Metropolitan centers, which constitute a dominant share of s total bank credit, recorded credit growth of 9.7% (year-on-year) in March 2022 (1.7% a year ago); credit growth in urban, semi-urban and rural centers remained in double digits for all quarters of 2021-22,” he said.
However, overall deposit growth moderated to 10.2% in March 2022 (12.3% a year ago). A deceleration in deposit growth was seen across all banking groups, the RBI said.
The share of current and savings accounts (CASA) deposits in total deposits increased slightly and stood at 45.1% in March 2022. CASA deposits accounted for 55.6% of additional deposits in 2021- 22, the central bank said. Furthermore, the all-India credit-to-deposit (CD) ratio improved slightly to 71.9% in March 2022 (71.5% a year ago), he added.