BackCredit up 18.7%, deposits rise 16.9% in 12 months: RBI
Credit up 18.7%, deposits rise 16.9% in 12 months: RBI
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Mumbai: Credit offtake from banks grew by 18.7% to over ₹ 41 lakh crore during the one-year period ended 29 July 2011, indicating a slowdown in investments and industrial activity.
The growth of credit has been above the 19% mark during past few months.
According to data from the Reserve Bank, credit offtake during the period stood at ₹ 41.29 lakh crore against ₹ 34.78 lakh crore in the same period of the previous year.
Meanwhile, deposits went up to over ₹ 56.34 lakh crore till the end of July this year against ₹ 48.19 lakh crore as on 30 July 2010. This is a rise of 16.9% on an annual basis.
In its first quarterly monetary review last month, the RBI had said that credit growth is likely to slow down as a result of the recent rate hikes.
RBI said that credit growth would be around 17-18% this fiscal, as against the earlier projection of 19%, while deposit growth has been pegged at 17%.
During 2010-11, bank credit had increased by 21.5%, while deposits grew by only 15.5%.
India Inc has also complained that frequent rate hikes have resulted in slowing down of investments and industrial growth.
Reserve Bank has hiked its key-policy rates three times this fiscal, and 11 times since March 2010, to curb inflation.
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