Global economy 'not yet out of the woods', warns RBI Governor Shaktikanta Das

Stating that there are signs of recovery, Reserve Bank of India (RBI) Governor Shaktikanta Das on Tuesday warned that the global economy is "not yet out of the woods" amid the ongoing COVID-19 pandemic.

Addressing the FIMMDA (Fixed Income Money Market and Derivatives Association of India)-PDAI (Primary Dealers' Association of India) Annual Conference, Das said, "During May last year, in one of my statements, I had noted that COVID-19 has crippled the global economy....It has been more than a year since. While there are signs of recovery, we are not yet out of the woods."

The RBI Governor further stated that through various measures, the Reserve Bank completed the borrowing programme in a non-disruptive manner and also created congenial conditions for other segments of the financial market such as the corporate bond market.

He stated that the Reserve Bank responded swiftly and undertook several conventional, unconventional and innovative measures in the realms of monetary policy, liquidity support and regulation.

Meanwhile, today, the Reserve Bank released Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks (SCBs), June 2021.

According to a statement issued by the RBI today, the data on credit and deposits disaggregated by type are classified by states/union territories (UTs), districts, centres, population groups and bank groups. These data are collected from all SCBs (including Regional Rural Banks and Small Finance Banks) under the Basic Statistical Return (BSR) - 7 system.

Listing the highlights of the Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks (SCBs), June 2021, the statement mentioned that Bank credit recorded 6 per cent growth (Year-Over-Year) in June 2021 (6.4 per cent growth a year ago) while bank branches in urban, semi-urban and rural centres recorded double-digit credit growth but it moderated for metropolitan branches to 2.7 per cent (5.1 per cent a year ago).

It further said the growth (Year-Over-Year) in credit by private sector banks (10.1 per cent) was much higher than that for public sector banks (3.1 per cent).

The RBI statement said the aggregate deposits growth (Year-Over-Year) stood at 10 per cent in June 2021 (11.5 per cent a year ago) and deposit accretion in private sector banks grew at a faster pace vis-a-vis public sector banks.

The share of current account and savings account (CASA) deposits in total deposits increased further to 43.8 per cent in June 2021 (42 per cent a year ago), it said.

The statement also said that as deposit growth outpaced credit growth, the all-India credit-deposit (C-D) ratio moderated to 70.5 per cent in June 2021 (73.1 per cent a year ago), C-D ratio declined for all bank groups, except for regional rural banks.

( With inputs from ANI )

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