BFSI sector recorded a steady credit with strong growth in overall outstanding loans increasing by approximately 16 per cent on a yoy basis in June, 2024. Deposit growth picked up yoy and is likely to see further uptick in the current rising interest rate regime.
On a month on month basis, the outstanding loans across scheduled banks witnessed an uptick of 2.9 per cent and 16 per cent uptick yoy recording Rs 171.8 trillion loans across scheduled banks in June 2024, compared to Rs 167 in May, Rs 165.5 trillion in April, Rs 165.1 trillion in March and Rs 161.1 trillion in February, revealed the latest data by 1Lattice.
The Reserve Bank of India in its financial stability report highlighted that there has been remarkable credit growth in the banking sector, equally driven by the public sector banks and the private ones.
Also check out the outstanding loans, credit and deposits for the month of May’24.
Credit growth reached 15.4 per cent, with considerable contribution from the personal loan segment. Personal loans recorded a broad-based growth of 22.2 per cent (y-o-y) with all major segments.
Outstanding loans in scheduled banks are growing at a higher pace compared to the deposits.
Deposits across scheduled banks recorded approximately 12 per cent yoy growth in June. On a month on month basis, deposits across scheduled banks witnessed a slight increase of 2.4 per cent, recording Rs 219.6 trillion deposits in June, compared to Rs 214.5 trillion deposits in May, Rs 212.9 trillion deposits in April, Rs 213.4 trillion deposits in March and Rs 205.4 trillion deposits in February 2024, revealed the 1Lattice data.
In the past two years, the aggregate deposit growth had undergone a slight moderation during 2021-22.
Also check out the outstanding loans, credit and deposits for the month of Apr’24.
A report by State Bank of India revealed that between FY14 and FY23, the banking credit has increased from Rs 60 trillion to Rs 138 trillion, thereby registering a credit growth of over 2.3 times. Around the same period, bank deposits surged 2.4 times from Rs 77 trillion to Rs 187 trillion.
Growth in non-cash retail transactions
The 1Lattice data further revealed that the non-cash retail transactions witnessed a significant spike by approximately 15 per cent yoy in June 2024.
The non cash retail transactions were mainly dominated by the NEFT mode of payment, followed by Unified Payments Interface (UPI). NEFT recorded Rs 33.3 trillion transactions, followed by UPI with Rs 20.1 trillion transactions, CTS with Rs 5.5 trillion transactions and credit and debit cards with Rs 1.6 and Rs 0.4 trillion transactions respectively in June 2024, the data highlighted.
Also check out the outstanding loans, credit and deposits for the month of March 2024.
Total non-cash retail transactions by value recorded was Rs 69.7 trillion in June 2024 with an 15 per cent Yoy growth but 3.8 per cent decline on a month on month basis, compared to Rs 72.4 trillion transactions by value in May and Rs 68.4 trillion transactions by value in April 2024.
