Overall credit growth in banking sector continues to remain moderate in the fortnight ending September 11, 2020. Credit growth during the last two fortnights at 5.3 per cent and 5.5 per cent, respectively, was approximately half of last year's 10.4 per cent and 10.2 per cent.
Deposits increased by 12 per cent (as of September 11, 2020) compared with 10.9 per cent in previous fortnight (August 28, 2020) and 10.0 per cent in the year-ago period (September 13, 2019). Deposit growth was faster as compared to last two years which saw growth between 8-11 per cent. It indicates that depositors are spending less and saving more.
Demand deposits which account for 10.6 per cent of total deposits grew by 15.6 per cent on YoY basis as of 11 September 2020.
Time deposits which account for 89.4 per cent of aggregate deposits grew at a similar pace compared to demand deposits.
Credit to Deposit (CD) ratio stood at similar level during the last two fortnights ended August 28, 2020 and September 11, 2020 due to slower growth in credit.