According to latest data from the Reserve Bank of India (RBI) for the fortnight ended 10 April, amid the nationwide lockdown to curb the spread of COVID-19, bank credit grew by 7.20 percent to Rs 103.39 lakh crore and deposits rose by 9.45 percent to Rs 137.14 lakh crore.
In the year-ago fortnight, bank advances had stood at Rs 96.44 lakh crore and deposits at Rs 125.30 lakh crore.
In the fiscal ended 31 March 2020, bank loans had decelerated to 6.14 percent, a near five-decade low, due to slower economic growth, lower demand and as banks remained risk averse.
Loan growth in FY20 was the slowest since the fiscal ended March 31, 1962, when it had increased by 5.38 per cent.
During the year, bank deposits grew by 7.93 percent to Rs 135.71 lakh crore as against Rs 125.73 lakh crore as per RBI data.
When compared with the previous fortnight which ended on 27 March 2020, bank credit grew by 0.3 percent in the fortnight ended on 10 April.
Similarly, the growth in deposits was just 1.1 percent between 28 March and 10 April when compared with the previous fortnight.