Reserve Bank of India reports slight increase in bank credit

NEW DELHI: The Reserve Bank of India (RBI) Tuesday reported a slight increase in bank credit for the fortnight ending June 15 accompanied by a minor decline in deposits compared to the previous reporting period. As per RBI's data, the aggregate bank credit for all scheduled banks rose to ₹220.59 lakh crore as of June 15, up from ₹220.26 lakh crore on May 31. 

When compared year-on-year, bank credit has shown a significant growth of approximately 17.4%, increasing from ₹187.84 lakh crore recorded during the same period last year.

In contrast, total deposits from scheduled banks excluding inter-bank deposits decreased to ₹263.86 lakh crore as of June 15, down from ₹265.39 lakh crore two weeks prior. However, this figure represents an approximate 12% increase from ₹235.62 lakh crore reported in the corresponding period the previous year. 

The majority of these deposits amounting to ₹231.36 lakh crore are categorized as time deposits.

Banks have increased their investments in securities to ₹72.52 lakh crore up from ₹72.17 lakh crore at the end of May. Notably, investments in central and state government securities constituted a significant portion of this increase. 

Moreover, the reliance on RBI liquidity support has decreased sharply with borrowings falling to ₹32,882 crore as of June 15 compared to ₹92,900 crore two weeks earlier.

The RBI publishes the statement of position for scheduled banks on a fortnightly basis offering a comprehensive overview of the banking system's deposits, credit, investments and liquidity conditions.