Mumbai: Year-on-Year Growth in the Bank Credit The growth rate accelerated to 15.32 per cent in the fortnight ended August 12, 2022, the fastest in three years, surpassing the 8.8 per cent growth in bank deposits. The wide gap between advances and deposit growth may prompt banks to raise deposit rates.
The total debt as on August 12 stood at Rs 124.3 lakh crore, to which banks added Rs 61,175 crore during the fortnight. Credit growth stood at 14.2% at the end of Q1 as compared to 14.5% at the end of July 2022.
The strong growth in credit is partly due to strong retail demand, rising commodity prices and higher demand due to government investment and inflation, which has increased working capital requirements for companies.
Despite the increase in bank credit reserve Bank of India It raised its key policy rates three times a total of 140 basis points since May. One of the reasons for higher growth is the low base in the first half of FY22 due to the pandemic. Year-on-year (since April 2022), bank credit has grown by 4.5% this year as compared to -0.6% last year.
Deposits in the bank till August 12 stood at Rs 169.5 lakh crore. During the current financial year, banks have deposited Rs 4.84 lakh crore against advances of Rs 5.4 lakh crore.
Despite upward pressure on interest rates, yields on government bonds fell by 8 basis points on Friday. The 10-year government bond closed at 7.21% from its previous close of 7.29%, following an article in financial Times said that JP morgan It was seeking investor views on including India in its global bond indices. Joining global indices could bring passive funds up to $30 billion in government bonds.
Joining the bond index will also support the rupee. According to the RBI released on Friday, forex reserves fell by $ 6.68 billion to $564 billion during the fortnight ended August 19. Among reserve components, foreign exchange assets (FCA) fell by $5.8 billion to $501.2 billion, while RBI’s gold holdings declined by $704 million to $39.9 billion.
The total debt as on August 12 stood at Rs 124.3 lakh crore, to which banks added Rs 61,175 crore during the fortnight. Credit growth stood at 14.2% at the end of Q1 as compared to 14.5% at the end of July 2022.
The strong growth in credit is partly due to strong retail demand, rising commodity prices and higher demand due to government investment and inflation, which has increased working capital requirements for companies.
Despite the increase in bank credit reserve Bank of India It raised its key policy rates three times a total of 140 basis points since May. One of the reasons for higher growth is the low base in the first half of FY22 due to the pandemic. Year-on-year (since April 2022), bank credit has grown by 4.5% this year as compared to -0.6% last year.
Deposits in the bank till August 12 stood at Rs 169.5 lakh crore. During the current financial year, banks have deposited Rs 4.84 lakh crore against advances of Rs 5.4 lakh crore.
Despite upward pressure on interest rates, yields on government bonds fell by 8 basis points on Friday. The 10-year government bond closed at 7.21% from its previous close of 7.29%, following an article in financial Times said that JP morgan It was seeking investor views on including India in its global bond indices. Joining global indices could bring passive funds up to $30 billion in government bonds.
Joining the bond index will also support the rupee. According to the RBI released on Friday, forex reserves fell by $ 6.68 billion to $564 billion during the fortnight ended August 19. Among reserve components, foreign exchange assets (FCA) fell by $5.8 billion to $501.2 billion, while RBI’s gold holdings declined by $704 million to $39.9 billion.