Bank credit growth steady at 11.5%, deposits growth moderates to 9.8% in December 2024

The Scheduled commercial banks (SCBs) credit growth has remained steady on sequential basis at 11.5% YoY to Rs 17742873 crore as on 27 December 2024, compared with 11.5% growth a fortnight ago. The credit growth has decelerated from 20.0% growth at end December 2023.

Non-food credit, accounting for 99.7% of the share of the total credit, recorded a growth of 11.4%, YoY, at Rs 17686734 crore as on 27 December 2024 as against a rise of 11.4% fortnight ago and 20.1% rise a year ago.

Food credit moved up 23.1% to Rs 56139 crore as on 27 December 2024.

The overall credit-deposit ratio moved up on sequential basis to 80.4% as on 27 December 2024 from 79.7% a fortnight ago, while increased from 79.5% in December 2023 with the faster growth in advances.

Aggregate deposits growth of the scheduled banks decelerated on sequential basis to 9.8% YoY at Rs 22063132 crore as on 27 December 2024, compared with 11.5% growth a fortnight ago and dipped from 13.3% rise a year ago. The time deposits of the banks moved up 10.4% at Rs 19493033 crore, while the demand deposits increased 5.4% to Rs 2570099 crore as on 27 December 2024.

The banks investment in government and other approved securities that qualify for treatment of statutory liquidity ratio increased 10.0% YoY to Rs 6594377 crore as on 27 December 2024, remaining steady from 10.0% increase a fortnight ago. The banks investment had moved up 17.6% in December 2023.

The investment-deposit ratio rose on sequential basis to 29.9% as on 27 December 2024 from 29.7% a fortnight ago, while moved up from 29.8% in December 2023. The investment-deposit ratio is much higher above the Statutory Liquidity Ratio of 18.0%.

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