Bank credit offtake is gaining traction, going by the Reserve Bank of India’s data.
Bank credit increased by ₹15,189 core in the fortnight ended September 10, 2021 and ₹8,234 crore in the fortnight ended August 27, 2021, according the RBI’s “Scheduled Banks’ Statement of Position in India.”
This comes in the backdrop of banks cutting interest rates on personal loans such as housing loans for the festival season, and increasing focus on loans against jewellery and vehicle loans. There has also been good demand for credit for agriculture and allied activities.
In the fortnight ended August 13, 2021, outstanding Bank credit had declined by ₹20,383 crore.
Banks’ deposits were up by ₹58,486 crore in the latest reporting fortnight ended September 10, 2021.
With deposit growth outstripping credit growth, Banks investments in central and state government securities jumped by ₹1,09,375 crore in the reporting fortnight.
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