Keeping with the rising momentum in economic activity, the expansion was broad-based, posting double-digit annual growth in June 2022 in metropolitan, urban, semi-urban and rural areas in the country, showed data.


data showed the metropolitan regions saw maximum acceleration with year-on-year (YoY) credit growth vaulting from 2.7 per cent in June 2021 to 13.2 per cent in June 2022. It should be kept in mind that the second wave of Covid-19 pandemic hit the economic activity in April-June 2021 (Q1FY22).


The urban region saw the growth rising to 18.4 per cent in June 2022 from 10 per cent a year ago. The semi-urban areas showed an increase from 12.3 per cent in June 2021 to 15.3 per cent. In contrast, the pace of credit offtake in rural areas moderated to 11.6 per cent YoY in June 2022 from 12.8 per cent a year ago.

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The similar growth trend (double-digit YoY) was evident across all the bank groups — (public sector banks, private banks, foreign banks, Regional Rural (RRBs) and (SFBs). The experience was no different for all the regions of the country (central, eastern, north-eastern, northern, southern and western), said.


However, the story on fund raising by was different. The aggregate deposit growth (y-o-y) has remained in the range 9.5-10.2 per cent during the last five quarters.


The metropolitan branches continue to account for over half of the bank deposits and their share increased marginally over the last one year, said.


The share of current account and savings account (CASA) deposits in total deposits has been increasing over the last three years. The share of CASA money which was 42 per cent in June 2020, rose to 43.8 per cent in June 2021 and further to 44.5 per cent in June 2022.


As credit growth is outpacing deposit growth in the recent period, credit-deposit (C-D) ratio has been on the rise in June 2022. The C-D ratio stood at 73.5 per cent at all-India level in June 2022 (70.5 per cent a year ago) and 86.2 per cent for metropolitan branches of banks (84.3 per cent a year ago), it added.



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