Bank credit grows 15.7%; deposits increase 10.2%, shows RBI data

Banking system’s credit rose by 15.7 per cent year-on-year (YoY) basis in the fortnight ended April 7 to Rs 138.45 trillion. This was the first fortnight in the current financial FY24. 
 

The credit rose by 15 per cent YoY in FY23. Reserve Bank of India data showed while advances grew by Rs 1.7 trillion in the reporting fortnight, accretion to deposits more than doubled to Rs 4.06 trillion. The growth in deposits was 10.2 per cent YoY basis to Rs 184.5 trillion at end of April 7. 

RBI to conduct VRRR auction to reduce surplus liquidity

The Reserve Bank of India (RBI) will conduct a 13-day Variable Rate Reverse Repo (VRRR) auction for Rs 50,000 crore on April 21 to reduce surplus liquidity in the system. The auction would be held under Liquidity Adjustment Facility (LAF), according to the RBI.

The excess liquidity was about Rs 1.73 trillion as of April 19. It had conducted a 15-day VRRR auction on April 6, for Rs 2 trillion. It would reverse on April 21.