Synopsis
• Credit offtake and deposit growth for the fortnight are now broadly aligned with each other. Additionally, when comparing growth rates with December 2023, credit offtake has marginally outpaced deposit growth.
o As of December 13, 2024, credit offtake reached Rs 175.9 lakh crore, representing a 10.2% increase compared to the end of December 2023. This slowdown in growth can be attributed to a higher base effect due to the merger, along with measures from the Reserve Bank of India (RBI), such as higher risk weights and proposed liquidity coverage ratio (LCR) norms.
o Deposits increased by 9.9% compared to December 2023, reaching Rs 220.7 lakh crore as of December 13, 2024. This growth is largely due to elevated term deposit rates of Scheduled Commercial Banks (SCBs).
• The Short-term Weighted Average Call Rate (WACR) has decreased slightly to 6.71% as of December 20, 2024, down from 6.78% on December 22, 2023.
