Chennai, Credit from banks continued to grow, increasing by 20.5 per cent year-on-year (yoy) to reach Rs 162.1 lakh crore, for the fortnight ending February 23, 2024, CARE Ratings said.
In its latest report, CARE Ratings said the increase can still 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 by 16.5 per cent yoy during 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 also grew by 13.1 per cent yoy during the fortnight (including the merger effect) and reached Rs. 202.0 lakh crore as on February 23, driven by growth in time deposits.
Excluding the merger effect, growth stood at 12.5 percent. Consequently, it remained flat.
Deposit growth is expected to improve compared to earlier periods as banks seek to strengthen their liability franchise and ensure that deposit growth does not constrain credit, the report notes.
— IANS
vj/vd