【Mumbai】Credit growth in the country continues to be behind deposit growth. The Reserve Bank of India's data released on Wednesday shows credit grew by 14.85 per cent year-on-year (y-o-y) as on January 10. On a y-o-y basis it stood at 15.56 per cent in the same period.
On a fortnight basis ending on January the credit grew by 0.59 per cent, while deposits recorded a growth of 0.63 per cent. The monetary transmission in the system has been slower because banks have been reluctant to hike lending rate much due to slow credit pick-up.
○Banks may get more funds from Govt in Feb
【Mumbai】The Government may infuse second round of capital into banks in February based on retail lending performance of banks.
Rajiv Takru, Financial Services Secretary, said, "Depending on bank performance in the schemes up to January 31, 2014, the Government will look to infuse additional funds into banks."
In the Union Budget in 2013, the Government had earmarked Rs 14,000 crore for capital infusion into banks. Since the Government is the majority shareholder in almost all public sector banks, it infuses a certain amount of funds into banks every year. If the Government infuses any additional amount into banks in February, it will be over and above the Rs 14,000 crore it has already infused earlier this year.
Bank credit growth lags deposit growth, says RBI data
Banks may get more funds from Govt in Feb
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