With higher interest rate, banks clocked a marginal growth in loans at 17.44 per cent, compared to 17.45 per cent 15 days before that. According to ratings agency CRISIL, loans being disbursed by banks may surge past those by non-banking financial companies (NBFCs).
The retail segment has been driving the growth in loan demand, as bank credit to the sector went up by 11.5 per cent for Octover, and will speed up to a rate of 18 per cent in FY 23. This acceleration will come majorly due to the demand for home loans, while deposits grew at a slower pace of 9.36 per cent. As liquidity has improved, whether or not banks can generate deposits at par with credit demand, will be something to focus on.
