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Metro branches bring life back in bank credit growth

The rise in credit growth during the current financial year has been led by gradual revival of lending by bank branches in metropolitan centres, while private sector banks raised their market share further, Reserve Bank of India said Friday.

Credit-deposit ratio for metropolitan branches stood at 82.8 per cent in September against 88.4 per cent a year ago, reflecting the fact that deposit mobilisation outpaced lening growth. All-India credit-deposit ratio dipped to 70 per cent from 72 per cent over the same period.

Banks’ deposit growth, however, moderated a bit to 10.1 per cent in September from 11 per cent a year ago. The share of current account and savings account (CASA) deposits in total deposits has been gradually rising and it stood at 44.3 per cent in September 2021.

Private sector banks recorded 10.9 per cent and 16 per cent year-on-year growth in credit and deposit respectively in September. Correspondingly, growth in public sector banks stood much lower at 3.7 per cent and 7.4 per cent, respectively.

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