Credit offtake from public and private banks grew by over 21.5% in the one-year period ended March 25, indicating an upswing in the industrial activity.
According to the RBI data, credit offtake during the period stood at Rs 40.57 lakh crore against Rs 33.37 lakh crore in the same period of previous year.
During 2010-11, deposits went up to over Rs 53.51 lakh crore from Rs 46.35 lakh crore as on March 26, 2010, the data showed. This is a rise of about 15.5% on an annual basis.
The RBI, in its annual monetary policy at the beginning of the fiscal, had estimated credit growth of 20% in 2010-11. At the same time deposit growth was pegged at 17%.
However, in December 2010 the apex bank expressed concern at the widening ratio between the credit and deposit rates of banks.
In its third quarterly monetary policy review for 2010-11, the RBI had observed that the deposit growth moderated during 2010 as real rate of return was in negative due to high inflation.
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However, all banks raised their deposit rates after the second quarter Review of 2010-11, which contributed towards a larger deposit mobilisation in December.
Consequently, deposit growth increased to 16.5% by end-December 2010, close to the indicative projection of 17% for 2010-11.
However, annual credit growth has been above the RBI's indicative projection of 20% since early October 2010, rising to 24% by end-December 2010, it said.
The wide gap between credit growth and deposit growth resulted in a sharp rise in the incremental credit-deposit ratio to 102% by end-December 2010, up from 58% in the corresponding period of previous year, it added.
During the past few months, credit offtake has grown at the rate of 20% on an average.
Credit offtake has been higher this fiscal on account of large borrowings by telecom firms to pay for 3G spectrum licences.
The government realised over Rs 1 lakh crore from the sale of spectrum for high speed mobile and broadband wireless services, much higher than the Budget estimate of Rs 35,000 crore.
Credit rating agencies like Crisil had earlier said the country was likely to see credit offtake growth of around 20-22% this fiscal.