According to the data, credit grew to R55,48,126 crore compared to R47,84,325 crore in the corresponding 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 papers (CPs) 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 CP market.
Corporate growth is expected to be muted for the next two months as there is no expansion or new projects that are coming up. But credit growth will be coming in from agriculture, SME and retail sectors, said P Srinivas, executive director at Bank of Baroda. Credit for agro-based industries will pick up sometime in November-December. Agro-based industries will do better as the crop was good this year, he added.
Meanwhile, deposits grew at 15.35%. Total deposits grew to R73,89,751 crore compared to R64,06,213 crore in the same period last year.
Time deposits and demand grew at 15.90% and 10.03%, respectively. Time deposits grew to R67,34,189 crore from R58,10,395 crore last year. Demand deposits grew to R655,557 crore from R595,817 crore last year.
Bank of Barodas Srinivas also said that deposit growth could see some moderation as well as the RBIs foreign currency non-resident (FCNR) deposit window is expected to close on November 30.