Mumbai, Jan 27 (SocialNews.XYZ) The gap between credit and deposit growth of banks as of the first fortnight of January 2024 has widened compared to the last fortnight of September 2023, according to the latest RBI data.
As on January 12, 2024, year-on-year credit and deposit growth stood at 19.93 per cent and 12.84 per cent respectively, which reflects a gap of 7.09 percentage points, RBI data on scheduled banks' statement of position in India shows.
During the reporting fortnight ended January 12, 2024, scheduled banks' credit outstanding increased by Rs 10,277 crore while deposits declined by Rs 98,848 crore, according to the statement.
"Healthier balance sheets have facilitated broad-based expansion in lending by banks. Bank credit growth continues to outpace deposit growth on the back of sustained momentum of demand," the RBI said in its last Financial Stability Report (FSR).
The RBI noted that rising interest rates have benefited banks and improved their net interest margins (NIM), as the transmission to yield on assets has been faster than that to the cost of funds.
"Nevertheless, as the rate cycle approaches its peak, banks' profitability is expected to come under pressure due to rising valuation losses, increasing risks for asset quality and tempering of credit growth," the RBI said.
Source: IANS
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz
This website uses cookies.
