Bank credit growth is closing in on the 12% mark on a year-on-year basis, underscoring sustained lending momentum despite a mixed fortnightly trend.
Bank credit
As of December 12, bank credit stood at Rs 196.5 lakh crore, up 11.73% from a year ago, according to Reserve Bank of India’s fortnightly data released on Friday. On a fortnightly basis, however, credit growth was muted, rising just 0.62% or Rs 1.2 lakh crore.
Slight decline in deposit
In contrast, deposit growth continues to lag credit growth. Total deposits were marginally lower over the fortnight, declining 0.19% or about Rs 45,344 crore to Rs 242.1 lakh crore. On a year-on-year basis, deposits grew 9.73%, significantly below credit growth, keeping pressure on banks’ funding profiles. Investments by banks were largely flat over the fortnight, slipping marginally by 0.01%. On a yearly basis, investments rose 5.01%.