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EconomyBanking

Bank credit growth quickens to 19.26% in the fortnight to October 31 as deposits lag by 2.5 points

Loans outstanding reached ₹237.03 lakh crore in the run-up to Diwali, the Reserve Bank's data showed, while deposit growth stayed at 16.76%. The widening gap comes as the central bank tightens money.

From the editorial desk · MumbaiEdited by Puneet PanesarPublished
The Reserve Bank of India office in Bhubaneswar (file photo)
The Reserve Bank of India office in Bhubaneswar (file photo) Photos: Subhrasingh / Wikimedia Commons; McKay Savage from London, UK / Wikimedia Commons; Gppande / Wikimedia Commons; Elroy Serrao / Wikimedia Commons

19.26% credit growth, up from 17.94% in the previous fortnight

₹237.03 lakh cr bank credit outstanding on October 31

2.5 points gap between credit and deposit growth

Key points

  • Bank credit grew 19.26% year on year in the fortnight ended October 31, up from 17.94% two weeks earlier.
  • Deposits grew 16.76%, so credit outran deposits by 2.5 points, against 1.34 points in the previous fortnight.
  • Lending is rising as the RBI has raised the repo rate to 5.50% and retail inflation has crossed 6%.

The documents