Synopsis
- Credit offtake rose by 16.3% year on year (y-o-y) for the last quarter of FY23. In absolute terms, credit expanded by Rs.19.3 lakh crore from March 2022. It has been driven by sustained personal loan demand and robust growth in Finance space.
- Deposits saw a slower growth at 10.2% compared to credit due to rise in rates and lower liquidity seen in 1st couple of months of the quarter.
- Scheduled Commercial Banks’ (SCBs) growth in term deposits outperformed current account and saving account (CASA) growth.
- Over the last couple of years, (i.e., from March 2020) credit offtake has mostly overcome the Covid-induced lag and has grown by around 35.8% to almost catch up with deposit growth of 36.6% over the same period.
- The Credit Deposit (CD) ratio of SCBs rose by 390 bps y-o-y in Q4FY23 due to higher credit growth and reached 75.9% at the end of March 2023. PSBs reported the highest rise of 410 bps in their CD ratio to 69.8%.
