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For banks, rural India was a better bet compared with other centres when it came to credit growth in FY2015.
While banks reported a decline in credit (loans) uptake in percentage terms in semi-urban, urban and metropolitan areas, rural India bucked the trend, recording improved credit pick-up in FY2015 against FY2014, according to RBI data.
Year-on-year (y-o-y) credit growth in rural areas improved from 14 per cent as at March-end 2014 to 14.7 per cent as at March-end 2015.
In semi-urban areas, banks’ y-o-y credit demand slowed to 14.5 per cent from 19.5 per cent; in urban areas to 9.8 per cent (from 10.3 per cent); and in metropolitan areas to 8.5 per cent (13.7 per cent).
Among the four types of centres, metropolitan areas recorded the slowest accretion in deposits, logging a growth of 7.7 per cent (12.4 per cent as at March-end 2014). In the case of
In the case of rural areas, the deposit growth slowed to 15.7 per cent (17.1 per cent); in semi-urban areas to 14.4 per cent (16.5 per cent); and in urban areas to 13.7 per cent (14.3 per cent).
Growth in aggregate deposits and gross bank credit decelerated to 10.7 per cent and 9.8 per cent respectively in March 2015 from 13.9 per cent and 13.8 per cent, respectively a year ago.
The RBI said the above deceleration was broad based and observed across all population groups except ‘Rural’.
Among the five bank categories – SBI and its associates, nationalised banks, private sector banks, foreign banks and regional rural banks (RRBs), private sector banks were the only ones that reported increase in bank credit from 16.1 per cent to 18.6 per cent. The remaining four categories reported lower credit growth in percentage terms versus the previous years.
When it comes to deposits, SBI and its associates, RRBs, and private sector banks reported higher growth of 12.2 per cent (11.9 per cent); 14.1 per cent (13 per cent); and 16.8 per cent (13.7 per cent), respectively.
Nationalised banks and foreign banks saw sharp declines in deposit growth at 7.5 per cent (14.1 per cent) and 14.1 per cent (23.1 per cent), respectively.
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