MUMBAI: The annual increase in
bank credit
continues to outpace
deposit growth
by a high margin even after the base effect created by the merger of HDFC with HDFC Bank dissipated post-merger.
According to data released by RBI, bank credit grew by 14% year on year as of July 12 while deposit growth for the same period was 11.3%.
RBI data
shows that customers moved Rs 2.1 lakh crore out of savings and current accounts during the fortnight ended July 12, 2024.
During the same period, they invested an additional Rs 1 lakh crore in fixed deposits.
With outstanding deposits falling by Rs 1 lakh crore during the fortnight to Rs 211.7 lakh crore and bank credit declining by Rs 69,755 crore to Rs 168.1 lakh crore, the wedge between deposit and credit growth widened. As of July 12, the ratio of credit to deposits stood at 79.4%. The
credit-deposit ratio
has been hovering close to 80% for most of the financial year.
