Early this week, Rajkiran Rai G, the newly elected chairman of the Indian Banks’ Association (IBA) said credit demand was expected to be much better in the second half of the financial year (October 2020-March 2021). Credit is growing at five-six per cent (year-on-year basis) at the system-level at present. "We can see a slight improvement -- closer to eight or nine per cent -- by March 2021," he said.
"Actually overall in the first half, except for two-three months of lockdown, sanctions were substantial. But the utilisation of working capital fund has been quite low. It (working capital demand) expected to pick up now," Rai said.
The deposit of commercial banks
in India rose (Y-o-Y basis) by 10.54 per cent in the reporting fortnight (October 09, 2020), almost on par with 10.51 per cent reported for the previous fortnight. The deposits pool rose by Rs 39,949 crore to Rs 143.02 trillion on October 09, 2020 from Rs 142.62 trillion at end of the previous fortnight, according to RBI data. Last year around the same time (October 09, 2020) it was 9.8 per cent.
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