Bank credit grows 15.07% YoY in early Sept; deposits expands by 12.8%

Getting a boost from the festive period, bank credit expanded by 15.07 per cent year-on-year as of September 8, 2023, according to Reserve Bank of India data.

The outstanding credit of commercial banks, excluding the effect of HDFC's merger with HDFC Bank in July, stood at Rs 144.43 trillion, according to Reserve Bank of India data. Factoring in the merger of HDFC with HDFC Bank, the credit stood at Rs 150.38 trillion as of September 8, 2023.

RBI released the Scheduled Banks' Statement of Position in India as of September 8, 2023.

Sequentially, bank loans grew by Rs 1.28 trillion in the reporting fortnight from Rs 143.15 trillion as of August 25, 2023. The festive period is spread over September to December 2023 in the current financial year FY24.

Deposits expanded by 12.8 per cent year-on-year to Rs 192.39 trillion as of September 8, 2023. The pace of deposit mobilisation is lagging behind the growth in loans year-on-year. Sequentially, deposits grew by Rs 1.5 trillion in the reporting fortnight from Rs 190.89 trillion as of August 25, 2023.