The growth is slower than the growth of 27.6 reported during the corresponding period last year but higher than the 20 per cent increase in non-food credit being targeted by the central bank during 2008-09.
A part of the rise is being attributed to the higher demand for funds from public sector oil firms which are saddled with higher under-recoveries from the sale of petroleum products below the prevailing global rates.
With oil prices touching $146 a barrel yesterday, the demand for funds from oil companies is expected rise further as they will have to deal with more losses in the absence of permission to raise retail prices.
While the continued high level of credit growth is expected to put pressure on RBI, bankers expect the demand for funds will moderate in the months ahead due to the increase in interest rates.
For the moment the growth in accretion of deposits too was higher than the RBI's target of 17 per cent for the current financial year.
During the first 80 days of the current financial year, deposits of scheduled commercial banks rose 21.95 per cent to Rs 33,54,109 crore, as against Rs 27,50,356 crore between April and June 22, 2007.
This includes demand deposits (those with a tenure of less than a year), which grew 15.7 per cent to Rs 4,60,077 crore, while term-deposits with the scheduled commercial banks grew 23 per cent to Rs 28,94,031 crore.
