Bank loans

Bank lending grew 14.2% in the June quarter, find out the reason behind what RBI said

Bank credit grew 14.2% year-on-year in the April-June quarter of the current fiscal year. This had increased by 6% during the same quarter of the previous financial year. According to data from the Reserve Bank of India (RBI), in the last quarter of the last financial year, there was a growth of 10.8% in loans. RBI gave this information in quarterly public sector bank deposits and loans data for June 2022 released on Thursday.

Where is the data collected from?

This data is collected from all scheduled commercial banks (SCB). This includes Regional Rural Banks (RRB), Small Financial Banks (SFB) and Payment Banks (PBS). According to the data, credit growth was broad-based. Double-digit credit growth in June 2022 in all population groups (rural, semi-urban, Sherin and metropolitan), all banking groups (public-private sector banks, foreign banks, RRB and SFB) and banks from all parts of the country have been recorded in.

The Reserve Bank said that over the past five quarters, growth in total deposits has been in the range of 9.5 to 10.2 percent on an annual basis. Apart from this, the share of deposits from current accounts and savings accounts in total deposits has increased over the last three years (42% in June 2020, 43.8% in June 2021 and 44.5% in June 2022).

Apart from this, let us tell you that the Reserve Bank (RBI) on Wednesday lifted the ban on American Express Banking Corporation. Permission has been given to add new customers to the company’s card network. Currently this was prohibited and adding new customers was not allowed on the map. But after the RBI restrictions are removed, American Express Banking Corporation will be able to manufacture cards for new customers. American Express was banned by the Reserve Bank due to non-compliance with banking rules.

The Reserve Bank had imposed a ban on American Express Banking Corporation for ignoring rules and failing to follow instructions for storing payment system data. This restriction, in force since May 1, was decided to be lifted on Wednesday August 24.