Question : How much bank credit growth decelerates in March 2021 ?
a. 5.6 percent
b. 4.9 percent
c. 5.1 percent
d. 5.9 percent
Ans. a.
- Bank credit growth decelerated to 5.6 per cent in March 2021 from 6.4 per cent a year ago, the Reserve Bank said on May 28,2021.
- While aggregate deposits growth accelerated to 12.3 per cent in March 2021 from 9.5 per cent in the same month of the previous year.
- Lower growth in credit vis-a-vis deposits led to decline in the all-India credit-deposit (C-D) ratio to 71.5 per cent in March 2021 from 76 per cent a year ago.
- Combined credit by bank branches in top six centres (Greater Mumbai, Delhi, Bengaluru, Chennai, Hyderabad and Kolkata) declined marginally during 2020-21.
- These six centres together accounted for over 46 per cent of total bank credit.
- Bank branches in urban, semi-urban and rural areas, on the other hand, recorded 9.4 per cent, 14.3 per cent and 14.5 per cent credit growth, respectively, during the year.
- Public sector and private sector banks recorded 3.6 per cent and 9.1 per cent credit growth, respectively, whereas lending by foreign banks declined during 2020-21.
- Aggregate deposits growth accelerated to 12.3 per cent in March 2021 from 9.5 per cent a year ago. Metropolitan branches, which account for over half of total deposits, recorded nearly 15 per cent growth during 2020-21.
- The share of current account and savings account (CASA) deposits in total deposits increased to 44.1 per cent in March 2021 from 42.1 per cent a year ago.