Credit growth 16.21% in line with RBI's revised projection of 16%

Deposit growth sluggish at 13.74% below RBIs projection of 15%

Bank credit grew by 16.21% year-on-year to Rs 48.59 lakh crore while deposit growth remaining sluggish to 13.74% to Rs 64.35 lakh crore for the fortnight ended November 2, shows data released by the Reserve Bank of India (RBI) on Thursday.

The incremental credit grew by Rs 43,813 crore while deposits grew by Rs 47,211 crore during the fortnight.

However, on a Year To Date (YTD) basis from April, the loan growth was 5.38% compared with 6.13% similar period last year while deposit growth was 9% compared 8.63% on YTD basis.

The first half of the current fiscal has been sluggish in terms of credit growth. But bankers expect the second half to be better. In the second-quarter monetary policy review held last month the RBI had revised the credit growth projection downwards to 16% from 17% projected in April and July. However, deposit growth projection was kept unchanged at 15%.

The banks are focusing on retail credit this fiscal as the demand from industry has been almost muted. Pratip Chaudhuri, chairman, State Bank of India said while announcing half yearly results that the bank had collected deposits worth Rs 90,000 crore so far this fiscal however was able to deploy just about Rs 40,000 crore.