Bank credit witnessed double-digit growth in the latest fortnight ending May 20, as per RBI’s data. Loan books of bankers jumped despite EMIs getting costlier as the majority of lenders have increased their benchmark lending rate amidst RBI’s policy repo rate hike of 40 basis points. On the other hand, bank deposits witnessed a single-digit growth in percentage terms.
RBI’s data showed that bank credit stood at over ₹120.27 lakh crore in the fortnight ending May 20, 2022, rising by 11.04% from ₹108.31 lakh crore in the same period last year.
Bank credit is marginally down from nearly ₹120.41 lakh crore in the previous fortnight ending May 6th, 2022.
As per RBI’s lending and deposit rates of scheduled commercial banks, for May 2022, the one-year MCLR rose to 7.40% for Bank of Baroda from 7.35% in April, while Bank of Maharashtra’s lending rate jumped to 7.40% from 7.25% in April. The lending rate in Canara Bank increased to 7.35% (from 7.25% in April).
Meanwhile, Punjab & Sind Bank’s 1-year MCLR in May rose to 7.50% (from 7.45% in April. The largest lender SBI’s 1-year MCLR climbed to 7.20% (from 7.10% in April), UCO Bank to 7.45% (from 7.30% in April), and Union Bank of India to 7.35% (from 7.25% in April).
Under private sector banks, RBI’s data showed that Federal Bank’s 1-year MCLR jumped to 8.20% in May from 8% in April, HDFC Bank’s climbed to 7.50% (from 7.25% in April), IDBI Bank’s soared to 7.80% from 7.60%, IndusInd Bank’s rose to 8.75% from 8.55%, Kotak Mahindra Bank climbed to 7.65% from 7.40%, and Yes Bank’s surged to 8.60% from 8.50%.
On May 4, RBI surprised streets by hiking the policy repo rate by 40 basis points to 4.4%, while the standing deposit facility (SDF) rate was adjusted to 4.15%, and the marginal standing facility (MSF) rate and the Bank Rate to 4.65%.
In the fortnight ending May 20, loans, cash credits, and overdrafts stood at more than ₹117.92 lakh crore versus ₹106.31 lakh crore in the same fortnight of last year. It stood at ₹118.02 lakh crore in fortnight ending May 6, 2022.
Meanwhile, bank deposits climbed 9.27% to over ₹165.74 lakh crore in the fortnight ending May 20, compared to ₹151.67 lakh crore in the corresponding period of the last year.
Bank deposits declined against nearly ₹166.96 lakh crore posted in the fortnight ending May 6.
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