Non-food credit growth was 14.75% y-o-y compared to deposits that grew at 15.86% y-o-y, data for the fortnight ended on December 27, 2013, showed.
Deposits stood at R75,01,861 crore at the end of the fortnight compared to R64,74,822 crore in the same period last year.
Bankers and experts attributed the uptick in deposit growth to the special swap window for foreign currency non-resident (FCNR) deposits which ended on November 30.
Time and demand deposits grew at 16.7% and 8.25% y-o-y respectively. Time deposits grew to R68,12,075 crore at the end of the fortnight, while demand deposits grew to R6,89,790 crore at the end of the fortnight.
Non-food credit grew to R56,44,078 crore in the fortnight compared with R49,18,314 crore in the same period last year. Credit growth had reached a year high of 18.4% in September following the RBIs extraordinary liquidity tightening measures in July. The measures had driven up interest rates in the commercial paper (CP) market, forcing companies to turn to banks to finance their working capital needs.
Since then, liquidity restrictions have been eased and interest rates on the marginal standing facility have been reduced to 8.75%, thereby prompting corporates to return to the commercial paper market. Bankers say the current credit growth is in line with the RBIs estimate of credit growth for the fiscal year at 15%. For deposits, the RBI expects them to grow by 14%.
Bankers added that growth in the infrastructure segment is yet to pick up and that the housing and retail segments are getting a push. In November, the housing loans segment grew the fastest in retail loans and increased by 18.1% to R5,12,100 crore compared with growth of 15% last year in the same period, since banks were aggressively pushing their home loan products in the festive season.