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:

Reuters Showcase

FMC-SEBI Merger

FMC-SEBI Merger

Regulatory shakeup could revive commodities markets   Full Article 

Market Eye

Market Eye

Sensex, Nifty end higher after bumpy budget-day trading  Full Article 

Tax Incentives

Tax Incentives

Budget woos foreign investors  Full Article 

Excise Duty

Excise Duty

Cigarette makers fall after budget hikes excise duty  Full Article 

Welcoming the Budget

Welcoming the Budget

India Inc cheers corporate tax cut, simpler rules  Full Article 

Gold Price

Gold Price

Gold prices to rise after budget keeps import duty high  Full Article 

Fuel Prices

Fuel Prices

IOC to raise diesel, petrol prices from Sunday  Full Article 

Moody's on Budget

Moody's on Budget

Budget "credit neutral" from a ratings perspective - Moody's   Full Article 

Reuters India Mobile

Reuters India Mobile

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