RBI data showed that bank credit grows at 16.3% to Rs 133.41 trillion
- IBEF
- February 13, 2023
Latest data by the Reserve Bank of India (RBI) showed bank credit grew at 16.3% year-on-year (YoY) in the fortnight ended January 27 to US$ 161 billion (Rs 133.41 trillion), moderating marginally from the growth witnessed till last fortnight (16.5%).
In the fortnight under consideration, credit growth increased by 0.5% or US$ 7.8 billion (Rs 64,684 crore). It had moderated to 14.9% YoY in the fortnight that ended December 30 due to the base effect but picked up subsequently as the effect eased out.
Also, deposit growth of the banking system came in at 10.5% YoY for the fortnight that ended January 27. In the previous fortnight ended January 13, deposit accretion grew at 10.6% YoY.
Over the past several months, as system liquidity has slowed, banks have gradually increased deposit interest rates to raise money for the rapid credit expansion in the economy.
Mr. Michael D Patra, deputy governor of RBI, had said that the difference has narrowed, but there is still a difference. He further added said “It is really up to the banks to mobilise deposits and make up the gap. They are doing so through certificate of deposits and reducing non-SLR investments but they need to mobilise deposits on their own to meet the gap.”
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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