The credit growth in the banking system has started to overtake the deposit growth from the end of third quarter, data from the Reserve Bank of India (RBI) shows, reports fe Bureau in Mumbai. According to RBI data, growth in the non-food credit in the banking system as on December 25 stood at 11.2% comp-ared to the deposit growth at 10.88%. Since then the trend has continued with the latest data as on March 4 indicating the non-food credit has shown a growth of 11.55% while growth in deposits stood at 10.59%.
Anshula Kant, CFO at SBI pointed out this trend in an interview with a TV channel on Tuesday. Credit growth has outstripped deposit growth and that has been the trend this quarter, she indicated. Outstanding deposits in the banking system are still larger than the non-food credit. Latest data from the RBI shows that the outstanding non-food credit in the system stood at `71.41 lakh crore while the outstanding deposits stood at `94.06 lakh crore. Although a growth in the credit is a positive sign, fall in deposit growth over a longer period of time can hurt the bank margins.