Deposit growth equals credit in Nov 1 fortnight

After edging past credit growth for the first time in 30 months in the fortnight ended October 18, deposit growth was almost on a par with credit growth in the fortnight ended November 1, with credit growing by 11.9 per cent and deposit growing by 11.83 per cent year-on-year (Y-o-Y), according to the latest data released by the Reserve Bank of India (RBI).

- SUBRATA PANDA

The central bank data showed, credit in the system in the fortnight ended November 1 stood at ₹174.39 trillion while deposit stood at ₹220.43 trillion.

In the previous fortnight (October 18), deposit growth of 11.7 per cent outpaced credit growth of 11.5 per cent, signalling perhaps the start of a period where the liabilities side will keep pace with the asset side of the lenders.

Credit growth exceeded deposit growth since the fortnight ended March 25, 2022, leading to a widening gap that reached as much as 700 basis points (bps).