Bank credit grows 14.5% YoY as on July 29, deposits grow 9.1%: RBI data

Bank credit rose 14.52% to Rs 123.69 trn and deposits increased 9.14% to Rs 169.72 trn in the fortnight ended July 29, according to RBI data

Bank credit grew 14.5 per cent year-on-year as on July 29, outstripping 14 per cent year-on-year growth as on July 15, latest data released by the Reserve Bank of India showed.

As on July 29, banks' outstanding loans were at Rs 123.69 trillion, 0.7 per cent higher than a fortnight ago, the RBI data showed.

As on July 29, banks’ deposits stood at Rs 169.72 trillion, up 9.1 per cent year-on-year and 1 per cent higher on a fortnightly basis.

The figures on credit and deposit as on July 29 are provisional figures incorporated in respect of such banks as have not been able to submit final figures, the RBI said.

Addressing the media after the RBI’s monetary policy statement on August 5, governor Shaktikanta Das had said that banks cannot always rely on the central bank's money and they must mobilise deposits to fund credit offtake in the economy.

There are concerns within the banking sector that the current growth in deposits may pose funding challenges for lenders as they enter the festival season when there is high credit demand.