Bank credit grew almost 17% in fortnight ended Nov. 18: RBI

Central bank data shows deposit growth was 9.3% with overall base ₹177.15 lakh cr. as on November 18

File | Photo Credit: Bijoy Ghosh

Indian banking system's outstanding credit grew by 16.96% for the fortnight ended November 18, the Reserve Bank said on Friday.

The bank credit grew to ₹133.29 lakh crore for the fortnight ended November 18 this year as against ₹113.96 lakh crore on November 19, 2021, the Reserve Bank of India (RBI) said.

The deposit growth came at 9.30%, with the overall base ₹177.15 lakh crore as on November 18 as against ₹162.06 lakh crore in the year-earlier period, it said.

Interestingly, amid a war for deposits in the system as banks jostle to raise the liabilities to fund the elevated credit growth, the overall deposits in the system declined marginally during the fortnight as against the ₹177.88 lakh crore as on November 4.

It can be noted that the current fiscal has seen a steady rise in credit growth in FY23 driven by a variety of reasons, including economic growth, borrowers' shift to the bank as against other credit substitutes amid rising interest rates, etc.

In FY 2021-22, bank credit rose by 8.59% and deposits by 8.94%.