After remaining sub-10 per cent for two consecutive fortnights, bank credit grew 11 per cent to Rs. 62,69,007 crore for the fortnight ended October 3. In the corresponding fortnight last year, bank credit stood at Rs. 56,50,107 crore. In the last fortnight, the credit growth rose 9.7 per cent to Rs. 61,46,526 crore.
In the reporting period, deposits grew 13.05 per cent to Rs. 82,89,310 crore as compared with Rs. 73,32,159 crore in the year-ago period. The demand deposits jumped 15.83 per cent to Rs. 7,81,649 crore as of October 3 from Rs. 6,74,792 crore in the year-ago period. Time deposits grew 12.77 per cent to Rs. 75,07,668 crore in the period as against Rs. 66,57,367 crore in the same period last year.
Last month, the country’s largest lender State Bank had also cut the interest rate on medium-term deposits (one year to less than three years maturity) by 25 basis points to 8.75 per cent and by 25 bps the medium-term deposit in the 180–210 days category to 7.25 per cent. SBI had also later reduced the short-term deposit rates by 1 percentage point for amount below Rs. 1 crore.
Earlier this month, Punjab National Bank had also realigned interest rates on fixed deposits of Rs. 1–10 crore by up to 2 per cent. Interest on PNB’s term deposits of 7–14 days was increased by 2 per cent to 6 per cent.