<p>Bank credit grew 3.2 per cent to Rs 107.05 lakh crore in the first nine months of the current financial year, against a growth of 2.7 per cent registered in the corresponding period of 2019-20.</p>.<p>In the fortnight ended March 27, 2020, bank advances stood at Rs 103.72 lakh crore.</p>.<p>Bank deposits rose 8.5 per cent to Rs 147.27 lakh crore in the April-December 2020 period as against an increase of 5.1 per cent a year ago, according to the recent data released by the Reserve Bank of India.</p>.<p>The sharp accretion in deposits during the year was due to the 'safe haven' appeal of banks.</p>.<p>In the fortnight ended January 1, 2021, the year-on-year growth in bank credit was 6.7 per cent and 11.5 per cent in deposits, the data showed.</p>.<p>CARE Ratings in its recent report had said the bank credit growth has returned to the levels observed in early months of the pandemic -- average bank credit growth in March and April 2020 was around 6.5 per cent.</p>.<p>The bank credit growth in the fortnight ended January 1, 2021, increased compared to last fortnight (December 18, 2020) which can be ascribed to an increase in retail loans.</p>.<p>However, the credit growth remained marginally lower compared with the year-ago period (7.5 per cent as of January 3, 2020) reflecting subdued demand and risk aversion in the banking system.</p>.<p>Lenders are being selective with their credit portfolios due to asset quality concerns, the rating agency said.</p>.<p>According to the recent Financial Stability Report, under a baseline stress scenario, gross non-performing assets of all banks may rise to 13.5 per cent by September 2021, which would be the highest in over 22 years, from 7.5 per cent in September 2020. </p>
<p>Bank credit grew 3.2 per cent to Rs 107.05 lakh crore in the first nine months of the current financial year, against a growth of 2.7 per cent registered in the corresponding period of 2019-20.</p>.<p>In the fortnight ended March 27, 2020, bank advances stood at Rs 103.72 lakh crore.</p>.<p>Bank deposits rose 8.5 per cent to Rs 147.27 lakh crore in the April-December 2020 period as against an increase of 5.1 per cent a year ago, according to the recent data released by the Reserve Bank of India.</p>.<p>The sharp accretion in deposits during the year was due to the 'safe haven' appeal of banks.</p>.<p>In the fortnight ended January 1, 2021, the year-on-year growth in bank credit was 6.7 per cent and 11.5 per cent in deposits, the data showed.</p>.<p>CARE Ratings in its recent report had said the bank credit growth has returned to the levels observed in early months of the pandemic -- average bank credit growth in March and April 2020 was around 6.5 per cent.</p>.<p>The bank credit growth in the fortnight ended January 1, 2021, increased compared to last fortnight (December 18, 2020) which can be ascribed to an increase in retail loans.</p>.<p>However, the credit growth remained marginally lower compared with the year-ago period (7.5 per cent as of January 3, 2020) reflecting subdued demand and risk aversion in the banking system.</p>.<p>Lenders are being selective with their credit portfolios due to asset quality concerns, the rating agency said.</p>.<p>According to the recent Financial Stability Report, under a baseline stress scenario, gross non-performing assets of all banks may rise to 13.5 per cent by September 2021, which would be the highest in over 22 years, from 7.5 per cent in September 2020. </p>