Mid-rung lenders register 12-26% credit growth in Oct-Dec quarter

Sequentially, few banks have reported higher deposit growth than credit growth

As many as five mid-rung banks have reported credit growth in the range of 12–26 per cent year-on-year (YoY) in the October–December quarter (Q3). The banks’ deposit growth however has lagged, their business update for Q3 shows. 

But on a sequential basis, a few of the banks have reported higher credit growth than deposit growth. Overall, banking system credit growth has outpaced deposit growth by quite a margin until now.

The latest Reserve Bank of India (RBI) data shows an 800-basis point (bp) gap between credit and deposit growth rates. The five banks have posted a deposit growth in the