Kolkata: Banks' credit grew 17.7% at the end of the fortnight to June 15, unchanged from the print seen in the preceding two-week period, while deposits growth print slowed to 12% as compared with 12.2% for the same period, Reserve Bank of India data showed.The current growth rates for both credit and deposits are faster as compared to the prints seen a year back. At the same time last year, credit growth was recorded at 9.6% while deposits grew at 10.4% clip.The deposits growth slowed in line with the shift in preference of small savers who are looking to invest more in market-linked instruments for higher returns.Banks however expect the deposits mobilisation to grow faster hereon as non-residents are expected to put their surplus funds with foreign currency non resident bank (FCNR-B) deposits .Banks have raised interest rates on FCNR-B deposits by up to 450 basis points as the Reserve Bank of India on June 5 offered a concessional swap facility to boost foreign currency inflows. The central bank subsequently removed the ceiling on interest rates on FCNR-B and non-resident external (NRE) deposits creating further room for rate hikes.
Banks' credit steady at 17.7%, deposits ease to 12%: RBI
Bank credit growth stayed steady at 17.7% for the fortnight ended June 15, unchanged from the previous period, while deposit growth eased slightly to 12%, RBI data showed. Both credit and deposit growth remain stronger than a year ago, when they stood at 9.6% and 10.4% respectively.







