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. (Reserve Bank of India/Youtube)

NEW DELHI — Reserve Bank of India (RBI) Governor Shaktikanta Das on Sept. 1 warned that the global economy is “not yet out of the woods” amid the ongoing Covid-19 pandemic. He also said that there are some signs of recovery.

“During May last year, in one of my statements, I had noted that Covid-19 has crippled the global economy,” said Das during the FIMMDA (Fixed Income Money Market and Derivatives Association of India)- PDAI (Primary Dealers’ Association of India) Annual Conference.

“It has been more than a year since. While there are signs of recovery, we are not yet out of the woods.”

Through various measures, the RBI Governor said the Reserve Bank completed the borrowing program in a non-disruptive manner and created congenial conditions for other financial market segments, such as the corporate bond market.

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

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

The data on credit and deposits disaggregated by type are classified by states/union territories (UTs), districts, centers, population groups, and bank groups, as per the statement issued by RBI.

These data are collected from all Scheduled Commercial Banks (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 said that Bank credit recorded 6 percent growth (Year-Over-Year) in June 2021 (6.4 percent growth a year ago) while bank branches in urban, semi-urban and rural centers recorded double-digit credit growth, but it moderated for metropolitan units to 2.7 percent (5.1 percent a year ago).

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

The Reserve Bank of India statement said the aggregate deposits growth (Year-Over-Year) stood at 10 percent in June 2021 (11.5 percent a year ago), and deposit accretion in private sector banks grew faster vis-a-vis public sector banks.

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

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

“In 2020, global GDP amounted to about 84.54 trillion U.S. dollars, almost three trillion lower than in 2019,” states a report by Statista.

(With inputs from ANI)

Edited by Saptak Datta and Praveen Pramod Tewari

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