Bank loans rose nearly 20% YoY to Rs 148.03 trillion for the fortnight ended July 28, the latest data from the Reserve Bank of India showed. The growth in advances received a boost from Housing Development Finance Corporation’s merger with HDFC Bank, demand for retail loans and loans to non-banking financial companies. Without the impact of the merger, advances would have risen nearly 15%.
Advances grew 20.2% in the previous fortnight ended July 14, taking into account the impact of the merger.
The growth in advances was higher than the growth in deposits. Deposits rose nearly 13% to Rs 191.7 trillion in the reporting period. Excluding the impact of the merger, deposits rose 12%.
“The outlook for bank credit offtake remains positive due to economic expansion, increased capital expenditure, implementation of the PLI schemes, and a push for retail credit,” brokerage firm CareEdge said in a report.
The growth would be coming off a high base in 2022-23. The personal segment is expected to perform strongly in comparison to the industrial segments.