Bank credit growth has decelerated to 5.8% in the Sep quarter from 8.9% in the year-ago period, according to RBI data.

Bank credit growth has decelerated to 5.8% in the September quarter from 8.9% in the year-ago period, according to the Reserve Bank of India data.

Aggregate deposits of banks rose 11% year-on-year in the quarter ended September compared to 10.1% growth a year ago, according to the 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks (SCBs), September 2020' – released by the RBI.

The deceleration in bank credit growth was seen across all the population groups - rural (11.2% vs 14.8%), semi-urban (9.4% vs 12.3%), urban (8.7% vs 9.9%) and metropolitan (3.6% vs 7.2%), the data showed.

Annual growth (y-o-y) in credit by private sector banks moderated significantly to 6.9% in September 2020 from 14.4% a year ago, whereas it increased marginally for public sector banks to 5.7% from 5.2% over the same period last year, it said.

The share of current account and saving account (CASA) in total deposits has been gradually increasing. It stood at 42.3% in September 2020 compared to 41.2% a year ago and 40.8% three years ago, PTI reported quoting the RBI data.

As deposit growth exceeded credit growth, the all-India credit-deposit (C-D) ratio declined to 72% in September 2020 from 73.1% in the previous quarter.

C-D ratio for metropolitan branches, which have a dominant share in bank deposits and credit, stood at 88.4% in September 2020 (90.9% a quarter ago). The ratio for Tamil Nadu, Andhra Pradesh and Chandigarh remained above 100%, the data showed.