According to the latest data from the Reserve Bank of India (RBI), private sector banks have sustained double-digit growth in credit year-on-year (y-o-y), reaching 15.1 percent in March 2022. The RBI’s ‘Quarterly Statistics on Deposits and Credit of SCBs’ report highlights a notable improvement in lending growth by public sector banks (PSBs), which increased to 7.8 percent in March 2022 from 3.6 percent a year earlier.
Private banks have consistently expanded their market share in the overall banking sector over the past few years. The report notes a steady rise in bank credit growth throughout successive quarters of FY22, culminating in double-digit growth by March 2022. As of May 6, the credit growth of the banking sector improved to 11.9 percent.
Metropolitan centres, holding a significant share in total bank credit, recorded a credit growth of 9.7 percent year-on-year in March 2022, compared to 1.7 percent a year ago. Credit growth in urban, semi-urban, and rural centres remained in double digits throughout all quarters of 2021-22.
On the deposit side, aggregate deposits growth moderated to 10.2 percent in March 2022, down from 12.3 percent a year ago. The deceleration in deposit growth was observed across all bank groups. The share of current account and savings account (CASA) deposits in total deposits marginally increased to 45.1 percent in March 2022. CASA deposits accounted for 55.6 percent of incremental deposits during 2021-22, according to the central bank. Additionally, the all-India credit-deposit (C-D) ratio marginally improved to 71.9 percent in March 2022, compared to 71.5 percent a year ago.