Credit & Deposit Growth Gap Continues to Remain Elevated

Synopsis • Credit offtake continued to grow, increasing by 19.7% year on year (y-o-y) to reach Rs. 154.3 lakh crore for the fortnight ending October 20, 2023. This surge continues to be primarily driven by the impact of HDFC’s merger with HDFC Bank and growth in personal loans. Meanwhile, if the impact of the merger is excluded, credit grew at a lower rate of 15.1% y-o-y fortnight compared to last year. The outlook for bank credit offtake remains positive, with a projected growth of 13-13.5% for FY24, excluding the merger's impact. Fortnightly_Credit_and_Deposit_Update_November_6,_2023