The seal of the Reserve Bank of India (RBI) is pictured on a door outside the RBI headquarters in Mumbai, India

Bank credit growth improved to 17.2% in the September quarter from 7% in the year-ago period, reflecting the recovery in economic activities.

“Credit growth remained broad-based, with all population groups and banking groups recording double-digit annual growth,” the Reserve Bank said when releasing “SCB Quarterly Deposit and Credit Statistics: September 2022”.

Bank credit growth improved further to 17.2% (year-on-year) in September, from 14.2% a quarter earlier and 7% a year ago, it said.

Overall deposit growth (year-on-year), which has remained in the narrow range of 9.5-10.2% since June 2021, stood at 9.8% in September. Since December 2020, bank branches in metropolitan centers have recorded higher annual growth than those in rural, semi-urban and urban areas.

The private sector banking group outperformed public sector banks, foreign banks and regional rural banks in mobilizing deposits, the RBI said.

According to the data, the annual growth of term deposits increased to 10.2% in September 2022, from 6.4% a year ago. Growth in demand and savings deposits moderated to 8.8% and 9.4% from 17.5% and 14.5%, respectively, a year ago.

“The share of savings deposits in total deposits, which fell from 32.4% in June 2019 to a peak of 35.2% in June 2022, moderated slightly to 34.7% in the last quarter. “, added the RBI.

He further said that all India’s Credit to Deposit (CD) ratio increased further to 74.8% in September 2022 from 73.5% a quarter ago and 70% a quarter ago. year. The CD ratio of metropolitan bank branches, which hold a dominant share in banking activity, was significantly higher at 87.6% in September 2022 (82.8% a year ago).