Synopsis:
- Credit growth is trending down and continues to converge with deposit growth on an annual basis. Meanwhile, if we study the growth rate compared with December 2023, deposits have outpaced credit offtake.
– Credit offtake increased by 5.8% compared to December 2023, to reach Rs. 168.8 lakh crore as of Aug 09, 2024. Personal loans and MSMEs account for the bulk of this increase, with corporate credit also contributing to the same. Meanwhile, sequentially credit saw a growth of 0.4%. This slowdown can be attributed to RBI measures around higher risk weights on unsecured loans and a higher base effect also by proposed LCR norms bank credit growth could face challenges in coming months.
– Deposits rose at 6.2% compared to December 2023 and reached 213.3 lakhs crore as of reported Aug 9, 2024, driven by growth in time deposits. Sequentially deposits increased by 0.6%. - The Short-term Weighted Average Call Rate (WACR) has remained the same at 6.48% as of August 14, 2024, compared to 6.68 as of August 18, 2023
