Synopsis:
- Credit offtake continued to grow, increasing by 20.4% year on year (y-o-y) to reach Rs. 155.7 lakh crore for the fortnight ending November 03, 2023. This surge is also due to the impact of HDFC’s merger with HDFC Bank and growth in personal loans. If we exclude the impact of the merger, credit grew at a lower rate of 15.9% y-o-y fortnight compared to last year’s growth of 17.0%. The outlook for bank credit offtake continued to remain positive for FY24.
- Deposits too grew by 13.5% y-o-y for the fortnight (including the merger impact). Excluding merger impact growth stood at 12.7%. Sequentially we saw an increase of 0.5%. Deposit growth is expected to improve compared to current trends in FY24 as banks look to shore up their liability franchise and ensure that deposit growth does not constrain the credit offtake.
- The Short-term Weighted Average Call Rate (WACR) stood at 6.77% as of November 10, 2023, compared to 6.16% on November 11, 2022, due to pressure on short-term rates.
