Synopsis
- Credit off-take continued its upward trajectory, posting a robust 19.8% year-on-year (y-o-y) increase, surging to Rs. 149.2 lakh crore for the fortnight ending August 25, 2023. This remarkable surge is primarily attributed to the impact of HDFC’s merger with HDFC Bank, along with substantial growth in personal loans. However, when we exclude the merger’s impact, credit grew at a comparatively lower rate of 14.8% y-o-y for the same fortnight, in contrast to the previous year.
- Deposits also showed healthy growth, marking a 13.2% YoY increase for the same fortnight, inclusive of the merger’s impact. When excluding this impact, the growth rate stood at 12.3% y-o-y. However, it’s worth noting a marginal 2 basis points (bps) sequential decrease.
- The outlook for bank Credit off-take remains optimistic, with a projected growth rate of 13-13.5% for FY24, excluding the merger’s impact.
- As of September 1, 2023, the Short-term Weighted Average Call Rate (WACR) stood at 6.65%, in contrast to 5.19% on September 2, 2022. This rise can be attributed to the recent implementation of incremental cash reserve ratio (I-CRR) norms by the RBI, which exerted pressure on short-term rates.
Credit_Offtake_Continues_its_Robust_Growth,_Deposits_Fall_Sequentially
