Banks' loan offtake gains pace at end of first quarter, shows data

Bank credit growth slowed further to 9.5% YoY in the fortnight ending June 27, with deposits growing at 10.1%, outpacing credit growth, data showed.

Banks’ credit offtake gained momentum in fag end of the first quarter (Apr-Jun) which rose by ₹1.69 trillion during the fortnight ended June 27,  — highest in any fortnight of the current financial year, latest data released by the Reserve of India shows. Deposits grew by ₹3.55 trillion during this same period. 

The central bank has cut the policy repo rate by 100 bps between February and June while keeping surplus liquidity in the banking system which has aided loan off take. 

However, the pace of bank credit growth on a year-on-year (Y-o-Y) basis continued to be in single digit,