Growth in non-food bank credit fell to 12.67 per cent year-on-year during the fortnight ended June 8 from 12.74 per cent in the previous fortnight. According to provisional data released by the Reserve Bank of India , outstanding loans to companies and individuals stood at Rs 85.33 lakh crore on June 8, higher than the Rs 84.86 lakh crore on May 25 and Rs 75.73 lakh crore a year ago. Non-food bank credit had recorded a 6.63 per cent y-o-y growth in the year-ago period.
Deposits with the banking system grew at 8.36 per cent y-o-y to Rs 114.04 lakh crore as on June 8, as against a 7.6 per cent growth for the fortnight ended May 25.
The net corporate bonds outstanding, at the end of March, was Rs 27.4 lakh crore, up 14 per cent from the outstanding at the end of March 2017, as per data released by Securities and Exchange Board of India .
Data from RBI showed that the net outstanding on commercial papers stood at Rs 5.07 lakh crore as on June 15, up 31 per cent from the March 31, 2017 level.
Taken together with the outstandings on corporate bonds and CPs, the total outstanding credit in the system adds up to around Rs 117.8 lakh crore, up 13.6 per cent from Rs 103.7 lakh crore in the comparable period last year.
Data on outstandings on corporate bonds for the April-June quarter are not available yet. In recent months, loan growth has been recovering from record lows with the banking system shaking off the impact of demonetisation and a bulk of lenders focussing on retail lending.
Analysts now sound increasingly optimistic about growth trends in credit offtake. However, much of the growth in fresh loans is being driven by small-ticket retail loans in the absence of fresh investments by corporates.
TransUnion CIBIL’s report on consumer loans indicated that the retail loans grew 25 per cent y-o-y led by 31 per cent growth in live accounts, but 6 per cent decline in average balance/account.
