Credit offtake picked up steam in the last two fortnights ending October 22 with Reserve Bank of India (RBI) data showing a growth of ₹94,773.53 crore. This comes in the backdrop of the ongoing festive season.
In the latest fortnight ended October 22, 2021, banks saw credit offtake of ₹34,345.49 crore. In the preceding fortnight ended October 8, 2021, credit offtake was ₹60,428.04 crore, as per RBI’s data on sectoral deployment of credit.
Economic activities rise
Dinesh Kumar Khara, Chairman, State Bank of India, said, “Credit demand appears to be on the rise with increasing economic activities across India.”
“Corporates too have started planning for future investments which will create demand for credit going forward,” he said, adding that SBI will see an overall credit growth of 9–10 per cent in FY22.
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Khara underscored that the bank could disburse home loans aggregating ₹17,000 crore last month despite SBI’s home loan rate not being the lowest in the industry.
Deposit growth varies
When it comes to deposit growth, there was a divergent trend in the banking system in the two reporting fortnights.
While deposits in the latest reporting fortnight declined by ₹38,554.31 crore, the preceding fortnight saw a robust accretion of ₹1,54,515.33 crore.