Total bank credit extended by the commercial banks in the country amounted to Rs 168 lakh croe as of July 12, up 14 percent over the same period last year. Deposits on the other hand amounted to Rs 211.8 lakh crore , up 11.3 percent over the same period a year ago.
On a fortnightly basis, while deposits contracted 0.5 percent, credit contracted by a slower pace of 0.4 percent, the RBI data presented in the weekly statistical supplement indicated.
The Reserve Bank of India (RBI) governor Shaktikanta Das expressed his concerns about structural changes taking place in the financial sector as a faster pace of credit growth than deposit growth potentially exposes the banking system to structural liquidity issues, while speaking at a media event last week.
Investments in government and other approved securities at Rs 63.16 lakh crore was up 8.6 percent higher over the same period a year ago.
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