Bank Credit And Deposits grew: RBI:
Recent data released by the Reserve Bank of India (RBI) showed that Bank credit and deposits grew and were higher in February 2021 than January 2021.
- The credit and deposits for February 2021 were even higher than the pre-pandemic data of February 2020.
Bank by RBI: At the end of February 2021:
- Bank credit grew by 6.63% to Rs.107.75 lakh crore which in February 2020 stood at Rs.101.05 lakh crore.
- Bank deposits grew by 12.06% to Rs.149.34 lakh crore which in February 2020 stood at Rs.133.26 lakh crore.
- Reason for Credit Growth:
- The growth in bank credit is driven by an increase in retail loans.
- Retail loans include a vast range of different loans. Personal loans such as car loans, mortgages, signature loans, and credit cards all fall into the category of retail loans, but business loans can also fall into the category of retail loans.
- The overall retail credit growth, which is currently at 9% is expected to accelerate further, led by mortgages (contributing 51%of retail loans) and back-end support by unsecured (cards/personal loans) and vehicle loans.