Bank credit growth remained firmly in double digits, rising to 14.6% year-on-year as of January 31, accelerating from 13.1% in the previous fortnight, data released by the Reserve Bank showed on Friday.
The sustained momentum underscores a broad-based revival in credit demand across both retail and corporate segments, with lending growth staying in double-digit territory for the past several months.
The pickup reflects stronger balance sheet expansion, higher working capital needs and steady retail loan offtake, particularly toward the latter part of the financial year.
The uptrend has been gradual but decisive. After remaining subdued in the first half of the year, credit growth gained traction from late August and strengthened further through the festive period, aided by higher trade financing and improved business sentiment. Momentum intensified in December and has carried into January, despite some mid-month moderation.
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On the liability side, aggregate bank deposits grew 12.5% year-on-year as of January 31, a sharp improvement from 10.6% recorded in the previous fortnight, signalling a recovery in deposit mobilisation alongside robust credit expansion.
The faster growth in deposits provides some comfort on funding conditions even as banks continue to see strong loan demand, keeping the focus on maintaining balance between credit expansion and resource mobilisation in the months ahead.
(Edited by : Ajay Vaishnav)
