Banks' advances grew 18.4 per cent on a year-on-year basis, as on November 4, marginally recovering compared to last week, when it fell below 18 per cent on a year-on-year basis for the first time in the current financial year.
According to data by the Reserve Bank of India (RBI), loan growth as on October 28 stood at 17.9 per cent, indicating credit growth remained sluggish, even as the busy season started. According to the data, deposit growth was 17.5 per cent.
On a fortnightly basis, advances by scheduled commercial banks rose by Rs 29,954 crore to Rs 41.8 lakh crore, while banks' deposits rose by Rs 35,119 crore to Rs 56.54 lakh crore.
RBI projects loan growth of 18 per cent and deposit growth of 17 per cent for the current financial year. The central bank has scaled down the loan growth projection to 18 per cent in July from 19 per cent in May.
Loan growth has been tepid so far this financial year, since interest rates remain high. RBI has raised the repo rate by 375 basis points in the last 20 months to control inflation.
