- Banks extended incremental credit of Rs 1.02 trillion, taking the outstanding loans to Rs 121.40 trillion.
- Earlier credit growth was even higher in April 2019, when it goes up to 14.19%.
- The main factors behind it were working capital utilization improved, credit from the non-banking sector improved, and companies were borrowing from banks at cheaper rates.
- In addition to that bank deposits grew by Rs 1.59 trillion, taking the total to Rs 167.33 trillion which leads to 9.3%.
- Bank credit in the system is expanding in double digits amid interest rates going up as the RBI has hiked the policy repo rate by 90 bps.
- Bulk deposit rates have witnessed the sharpest spike of 100-170 bps in a one-year time.
Question:
Q.1 According to RBI's latest data bank credit grew _______ percentage?a. 15%
b. 12.3%
c. 11.3%
d. 13.1%
