OFFICIAL STATISTICS SPECIALLY DESIGNED FOR INDIAN STATISTICAL SERVICE (ISS) AND OTHER GOVERNMENT & PRIVATE SECTOR STATISTICAL EXAMINATIONS
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Banking statistics provide quantitative information on deposits, advances, credit distribution and asset quality. They are widely used in monetary, financial and economic analysis.
1. Deposits and bank credit
Deposits represent funds placed with banks under specified categories, while bank credit represents lending or advances under the relevant statistical definition. Both are stock measures at a point in time unless a flow concept is explicitly stated.
ISS questions on official statistics often test definitions, statistical units, denominators, rates, index concepts and interpretation of published data. Focus on the exact meaning of each indicator before applying a formula.
2. Credit-deposit ratio
The credit-deposit ratio compares bank credit with deposits. It can be used as a broad indicator of the relationship between lending and deposit mobilisation, but interpretation requires attention to the banking population and geographic coverage.
Funds recorded with banks under the specified deposit category.
Bank lending or advances under the stated coverage.
Bank credit divided by deposits, expressed as a ratio or percentage.
Non-performing assets relative to the relevant loan or advance denominator.
3. Non-performing assets
Asset-quality statistics classify loans or advances according to the applicable regulatory or statistical framework. The meaning of an NPA ratio depends on the numerator, denominator, recognition rules and reporting date.
Always identify the numerator, denominator, reference period and unit before calculating an official-statistics indicator. In descriptive answers, define the measure first and then discuss uses and limitations.
4. Sectoral credit statistics
Bank credit can be classified by sectors such as agriculture, industry, services and personal loans. Classification systems allow analysts to study the distribution of formal credit across economic activities.
5. Stocks, flows and growth rates
A deposit balance is a stock, while new lending during a period is a flow. Growth rates should be calculated using compatible stock or flow measures and clearly stated reference dates or periods.
7. Three important questions
Try each one on your own first, then tap the answer.
Why is a bank deposit balance a stock measure?
Show answer
It records the amount outstanding at a particular point in time rather than the amount accumulated during an entire period.
A bank has deposits of ₹800 crore and credit outstanding of ₹600 crore. Calculate the credit-deposit ratio.
Show answer
CD ratio = 600/800 × 100 = 75%.
Discuss why stocks and flows must be distinguished in banking statistics.
Show answer
Balances at a date are stocks, while transactions over a period are flows. Mixing them produces incorrect growth rates and ratios.
Key takeaways
- Deposits and credit balances are generally stock concepts.
- Credit-deposit ratio compares two compatible stock measures.
- NPA statistics depend on classification and reporting rules.
- Banking statistics must distinguish stocks, flows and growth rates.
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- Indian official statistical system: MoSPI, NSO, NSC and the data they produce
- National accounts, GDP, IIP, price indices and labour statistics
- NSS surveys, sampling designs and data quality concepts
- Written specially for the ISS exam, and useful for other government and private sector statistical exams
- Concept-focused notes to revise quickly before the exam
Official Statistics for ISS and other Government & Private Sector Statistical Examinations