BFSI Summit: Credit growth not exuberant, shows economic strength, says Das

'Loan-deposit growth gap due to base effect; high-frequency indicators in green zone'

The wide gap between the credit and deposit growth rates was on account of their respective statistical bases, and high loan growth reflected the fundamentals of the Indian economy, Reserve Bank of India (RBI) Governor Shaktikanta Das said at the Business Standard BFSI Insight Summit on Wednesday.

“Just as the credit growth looks very high because of a low base of the previous year, deposit growth looks pretty low because of the base effect of the previous years,” Das said during a fireside chat.

According to the latest data released by the RBI, bank credit was growing at 17.5 per