Synopsis
• Scheduled Commercial Banks’ (SCBs) credit offtake rose by 18.8% (y-o-y) in Q1FY25. In absolute terms, credit expanded by Rs 26.4 lakh crore from June 2023 (including additional credit of approx. Rs 5.4 lakh crore infused by the merger). This growth has been driven by increasing demand for personal loans and MSMEs, along with merger impact. The southern region outperformed other regions with a y-o-y growth of 20.9%.
• Deposits witnessed a slower (compared to credit) growth at 12.1% (y-o-y), due to term deposits being counterbalanced by a higher base effect and slower CASA growth. In absolute terms, deposits expanded by Rs. 22.3 lakh crore from June 2023. The metropolitan region saw the highest growth, at 12.6% in Q1FY25 compared to Q1FY24.
o as term deposits witnessed a rise in interest rates, the growth for term deposits stood at 16.6%. However, CASA saw a moderate growth of 5.7%.
• The Credit to Deposit (CD) ratio rose by 457 bps y-o-y at the end of June 2024, reaching 80.4%. This increase is majorly due to higher credit growth driven by merger impact.
