Total deposits showed an increase of Rs 1,15,540 crore during 1998-99 against Rs 98,772 crore in 1997-98. Nevertheless, time deposits recorded a growth of over 20 per cent during the year, rising by Rs 1,00,630 crore to Rs 5,96,602 crore as on March 26, 1999, from Rs 4,95,972 crore on March 27, 1998.

During the first-half of 1999-2000, total deposits rose by 6.7 per cent (Rs 47,653 crore) to Rs 7,61,678 crore. "The time deposits component of aggregate deposits, too, sustained its upward trend during the first-half of the year," the RBI report said.

Non-food credit continued to form a substantial chunk of the total bank credit. Non-food credit constituted 90.3 per cent of total credit, while food credit was 9.7 per cent. Non-food credit showed a rise of 13 per cent or Rs 40,427 crore during 1998-99 compared with 15.1 per cent (Rs 40,789 crore) in the last year. Food credit grew by Rs 4,331 crore during 1998-99 against Rs 4,888 crore in the preceding year.

In the first-half, the bank credit grew by 2.6 per cent (Rs 9,557 crore) compared with 2 per cent (Rs 6,611 crore) in the corresponding period last year.

Priority sector received its the highest share of incremental bank credit during the year. Lending to priority sector was at 40.4 per cent, slightly in excess of the mandatory 40 per cent stipulated by RBI. Large and medium industries accounted for 34.7 per cent, while the remaining 24.9 per cent was disbursed to sectors like housing (6.3 per cent), non-food personal loans (5.8 per cent), wholesale trade (other than food procurement) (2 per cent) and consumer durables (1.5 per cent).

Export credit as a percentage of net bank credit declined to 10.6 per cent during 1998-99 from 11.4 per cent in the previous year. According to RBI, this trend reflects a decline in exports, even though banks are required to lend 12 per cent of their advances to exports. Export credit to bank credit further declined to 10.3 per cent as on 18 June, 1999.

The outstanding export credit of commercial banks showed 5.7 per cent rise at Rs 35,891 crore during 1998-99 compared with Rs 33,947 crore in the previous year. As on June 18, 1999, the outstanding export credit amounted to Rs 34,504 crore indicating an increase of 8.9 per cent over the same period last year.

Credit deposit ratio of banks was marginally higher at 55.5 per cent during 1998-99 against 55.3 per cent in the previous year.

On the liabilities side, deposits constituted 81.1 per cent of total liabilities in 1998-99. Term deposits accounted for 65.3 per cent of aggregate deposits. On the asset side, loans and advances were 38.9 per cent of total assets, while investments accounted for 35.7 per cent.

State-run banks held 81.01 per cent of total assets of banks, while private-sector and foreign banks constituted 10.93 per cent and 8.06 per cent rspectively.