Synopsis
- Credit growth is trending down and continues to converge with deposit growth on an annual basis. Further, if growth rates are compared with December 2023, deposit growth has outpaced credit offtake.
- Credit offtake increased by 8.3% compared to December 2023 and touched Rs 173.0 lakh crores as of October 04, 2024. Personal loans and MSMEs account for the bulk of this increase. The slowdown compared to last year can be attributed to a higher base effect due to the merger and RBI measures such as higher risk weights and the proposed LCR norms.
- Deposits rose at 9.1% compared to December 2023 and reached Rs 219.2 lakh crore as of October 04, 2024. This can be attributed to rising term deposit rates of Scheduled Commercial Banks (SCBs).
- The Short-term Weighted Average Call Rate (WACR) has dropped to 6.42% as of October 11, 2024, compared to 6.70% as of October 13, 2023, which indicates the liquidity is in surplus.
