Deposit growth and credit expansion a tale of contrasts in 2017-18

The credit off-take showed a steady rise near the close of the financial year (FY18), reflecting steady expansion of retail advances and a gradual uptick in corporate demand. In contrast, deposit mobilisation saw a substantial moderation, a different picture from elevated growth at the start of FY18. 

• Deposit growth and credit expansion have been a tale of contrasts in 2017-18
   
• Credit growth gathered steam, in tandem with economic recovery, albeit in a gradual manner, from early part of the third quarter of the current financial year
   
• Year-on-year growth moved into double digits (10.7%) in December 2017  
   
• The enhanced working capital requirement and shift from bond market to banks, amid tight liquidity is driving corporate demand
   
• The retail segment has shown robust growth. It rose by 20 per cent year-on-year till February 2018
   
• The financial year (2017-18) began with high double-digit growth in deposits, showing some effect of demonetisation. But the pace of liabilities expansion began to moderate and slowed down sharply in the third quarter. It did see some pick-up in the fourth quarter