Bank credit grew over 5.5% in FY21; deposits rose 11.4%

Bank credit grew by 5.56 per cent to Rs 109.51 lakh crore in FY21. On the other hand, deposits rose 11.4 per cent to Rs 151.13 lakh crore.

Bank credit grew 5.56 per cent to Rs 109.51 lakh crore, while deposits rose 11.4 per cent to Rs 151.13 lakh crore in the financial year ended March 31, 2021, data released by the Reserve Bank of India (RBI) showed. In the 2019-20 fiscal, advances had grown at 6.1 per cent and deposits at 7.9 per cent. "Though the interest rates of banks have reduced by 107 basis points from February 2020 to February 2021, the overall credit growth continued to moderate due to risk aversion and continued parking of excess liquidity with the RBI," Care Ratings said in a recent report.