Bank credit grows 17.5% in a fortnight; deposits up 10%: RBI data

Country's largest lender State Bank of India (SBI) raised deposit rates by 15-100bps, the maximum increase being for bulk deposits

Bank credit grew by 17.5 per cent year-on-year (YoY) to Rs 131.06 trillion in the fortnight ended December 2, reflecting the continuation of firm demand for loans in the economy, latest Reserve Bank of India (RBI) data showed.

Deposit mobilisation increased 9.9 per cent YoY to Rs 175.24 trillion during the period, a healthy rise from 9.6 per cent a fortnight ago, the latest data showed.

Deposit growth is picking up gradually as banks have begun to pass on the rate hikes done by the RBI.

As the system liquidity is shrinking, banks have become more aggressive to garner deposits