Banks’ non-food credit growth has touched 16.7% year-on-year (y-o-y) as the lower base effect continues to drive the growth. The non-food credit outstanding stood at Rs 125.2 trillion for the fortnight ended September 9, as per data released by the RBI.
During the same period, banking sector deposits outstanding stood at Rs 170 trillion, posting a growth of 9.5% YoY.
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While retail and MSME loans continue to drive credit growth, the corporate segment is seeing healthy signs of pick-up owing to working capital requirements, Crisil Ratings said in a recent webinar. The rating agency, after discussion with bankers, has guided for a 14-15% CAGR over FY22-24.
According to India Ratings, private sector banks are likely to continue to gain market share, though the pace of the gains is likely to moderate as public sector banks expand the loan portfolio faster, supported by strong balance sheets and supportive credit demand in the system. Both ratings agencies expect competition for deposits among banks to intensify as the deposit growth continues to trail the loan growth.