IANS | 12 Mar, 2024
Credit off-take from banks continued to grow, increasing by 20.5 per
cent year-on-year (y-o-y) to reach Rs 162.1 lakh crore, for the
fortnight ending February 23, 2024, said CARE Ratings.
In its
latest report, CARE Ratings said the rise can continue to be attributed
to the impact of HDFC’s merger with HDFC Bank along with the growth in
personal loans.
"If we exclude the impact of the merger, credit
grew at 16.5 per cent y-o-y for the fortnight compared to last year’s
growth of 15.5 per cent. Meanwhile, the outlook for bank credit offtake
continues to remain positive," it said.
The deposits too grew by
13.1 per cent y-o-y for the fortnight (including the merger impact) and
reached Rs. 202.0 lakh crore as of February 23, driven by growth in time
deposits.
Excluding the merger impact, growth stood at 12.5 per cent. Sequentially, it remained flat.
Deposit
growth is expected to improve compared to earlier periods as banks look
to shore up their liability franchise and ensure that deposit growth
does not constrain credit off-take, the report notes.
