Loan growth in Indian banks outpaces deposits thanks to 17.45% surge

Bank loans in India went up by 17.45 per cent in fortnight till December 2, as compared to the same period last year, according to the Reserve Bank of India. The development was a reflection of strong loan growth by most banks during the july to September quarter. Lenders are also expecting a jump in borrowings in the year to come.

Apart from wholesale and retail contributing to the demand, Non Banking Financial Companies were able to drive forward the credit for the services sector, according to a CareEdge report. But deposit growth will remain behind the credit surge for the rest of FY23, before the next fiscal year bridges the gap.

Deposits on the other hand went up by 9.85 per cent as investments by banks increased by Rs 34,600 cr.