GDP to decelerate in 2025, RBI to cut rates soon: Goldman Sachs
It forecast India's headline inflation at 4.2 per cent (average) in 2025 with food inflation at 4.6 per cent.
Bank credit growth on a year-on-year basis improved to 6.2 per cent in the December quarter from 5.8 per cent in the previous quarter but it remained lower when compared to 7.4 per cent growth recorded a year ago, RBI data showed.
Growth on a year-on-year basis in credit by private sector banks decelerated considerably to 6.7 per cent in the December quarter 2020 as against 13.1 per cent a year ago. On the other hand, public sector banks improved to 6.5 per cent in December 2020 as compared to 3.7 per cent in December 2019.
The RBI on Thursday released the ‘Quarterly Basic Statistical Returns (BSR)-1: Outstanding Credit of Scheduled Commercial Banks (SCBs), December 2020’.
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Aggregate deposits growth (y-o-y) of scheduled commercial banks increased to 11.1 per cent in December 2020 quarter as against 10 per cent a year ago.
Annual growth in current, savings and term deposits of banks stood at 13 per cent, 15.8 per cent and 8.2 per cent, respectively, the RBI data showed.
Higher growth in current account and savings account (CASA) deposits resulted in their higher share of 42.8 per cent in total deposits as against 41.2 per cent a year ago.
All-India credit-deposit (C-D) ratio improved marginally to 72.5 per cent in the reporting quarter from 72 per cent in the previous quarter, the data showed.
The credit-deposit ratio of metropolitan branches for over half of the banking business in India was 87.5 per cent.
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