MUMBAI 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.
(Reporting by Shamik Paul; Editing by Subhranshu Sahu)