The Reserve Bank of India said on Friday that the rise in FY 22 has been driven by a gradual revival of bank branches in metropolitan centres, a sign of a broad-based economic recovery.
The annual YoY of the Metropolitan region, which accounts for more than 60 per cent of bank credit, went from 1.7 per cent in March 2021 to 4.6 per cent in September 2021. The growth was 3.6 per cent in September 2020, according to data.
The growth was double-digit in the rural, semi-urban and urban centres.
In September 2021, the rate of bank YoY increased to 7.0 per cent from 5.6 per cent in March 2021 and 5.8 per cent a year ago.
In September 2021, aggregate deposits growth YoY decreased marginally to 10.1 per cent from 11.0 per cent a year ago. Bank branches in metropolitan centres, which account for more than half of the total deposits, led deposit mobilisation by banks.
In September 2021, private sector banks recorded 10.9 percent growth in credit and 16.0 percent growth y-o-y in deposits. Their public sector counterparts were much less than 3.7 percent for credit and 7.4 percent for deposits, respectively.
In September 2021, the share of current account and savings account CASA deposits in total deposits was rising and it stood at 44.3 per cent.
In September 2021, the all-India credit-deposit C-D ratio dropped to 70.0 per cent from 72.0 per cent a year ago, as deposit mobilisation outpaced lending growth. In September 2021, the C-D ratio for metropolitan branches, which have a dominant share in banking business, was 82.8 per cent, 88.4 per cent a year ago.