MUMBAI, April 3 (Reuters) - Indian banks’ advances grew at a slower pace in 2012/13 compared with a year earlier, and fell short of the central bank’s projection, hurt by lower demand for credit from companies in a slowing economy.
Banks’ loans grew 12.1 percent on year to March 22, lower than 16.6 percent in the previous year, provisional data from the Reserve Bank of India (RBI) showed on Wednesday.
Deposits grew 10.8 percent in 2012/13, compared with 11 percent in the previous year. The RBI had projected credit and deposit growth at 16 and 15 percent respectively.
“Credit growth is linked to the nominal growth rate of the economy, and if the growth suffers, the credit growth will be lower,” a senior official of a private sector bank said.
The official expects credit growth to be around 14-15 percent in 2013/14.
Banks’ credit stood at 52.63 trillion rupees ($969.2 billion) as of March 22, while deposits stood at 67.51 trillion rupees, the RBI data showed.
India’s economy is expected to have grown at its slowest pace in a decade at 5 percent in 2012/13.
$1=54.4 rupees Reporting by Shamik Paul; Editing by Sunil Nair