Deposit growth slips below 10%

Credit growth picks up to 11.7%; credit-deposit growth gap at 200 bps

- SUBRATA PANDA

Deposit growth in the fortnight ended December 12 slowed to 9.7 per cent year-on-year (Yo-Y), while the credit growth rate increased to 11.7 per cent Yo-Y. This resulted in a credit-deposit growth gap of 200 basis points (bps), underscoring the persistent deposit tightness in the banking system, latest data from the Reserve Bank of India (RBI) showed.

According to official data, overall bank credit expanded to ₹196.5 trillion as of December 12, up from ₹175.86 trillion in the same period last year. Credit grew by ₹1.2 trillion during the fortnight. Meanwhile, total deposits stood at ₹242.14 trillion in the December 12 fortnight, compared with ₹220.06 trillion a year ago. However, deposits declined by ₹45,344 crore during the fortnight, highlighting continued tightness in system liquidity.

In the previous fortnight ended November 28, credit growth stood at 11.5 per cent, while deposit growth was 10.2 per cent.