Banks' loan, deposit growth slower on weak GDP

MUMBAI Wed Dec 26, 2012 4:17pm IST

A labourer works on the sign of a bank building in Ahmedabad November 26, 2010. REUTERS/Amit Dave/Files

A labourer works on the sign of a bank building in Ahmedabad November 26, 2010.

Credit: Reuters/Amit Dave/Files

Related Topics

MUMBAI (Reuters) - Indian banks' advances and deposits grew at a slower pace in the first three quarters of the current fiscal year ending in March 2013, compared with the same period a year earlier, data from the central bank showed on Wednesday.

As of December 14, banks' advances grew 5.7 percent, slower than 7.8 percent in the year-ago period, while deposits grew 5.6 percent, compared with 6.5 percent.

"Credit growth is linked to the nominal GDP growth. If we are on a slower GDP growth path, naturally credit and deposit growth will be slower," a senior official with a private bank who did not want to be named said.

The official expects the full-year credit growth to be 14-16 percent. In its second quarter review of the monetary policy, the Reserve Bank of India cut its credit and deposit growth projection by 1 percentage point each to 16 percent and 14 percent, respectively.

India's economy grew 5.3 percent from a year earlier in the July-September quarter, below the 5.5 percent posted for the three months ending in June.

As of December 14, banks' advances stood at 49,626.49 billion rupees, up 0.1 percent from two weeks ago, while deposits were down by 0.1 percent at 64,339.34 billion rupees.

($1=54.8 rupees)

(Reporting by Shamik Paul; Editing by Subhranshu Sahu)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Drug Pricing

REUTERS SHOWCASE

 G20 Meet

G20 Meet

As G20 chases growth goal, members differ on how to get there   Full Article 

Modi Speaks

Modi Speaks

PM Modi says al Qaeda will fail in India - CNN.  Full Article 

Alibaba Listing

Alibaba Listing

Alibaba surges on massive demand in trading debut  Full Article 

Importing Rice

Importing Rice

Top rice exporter India importing over 100,000 T on temporary supply squeeze.  Full Article 

GSK Fined

GSK Fined

China hands drugmaker GSK record $489 mln fine, sentences executives.  Full Article 

HMT in Demand

HMT in Demand

Fans rush to HMT as watchmaker marks time.  Full Article 

Apple Not Cool?

Apple Not Cool?

Some consumers say Apple is losing its "cool" factor  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage