India credit growth: Credit growth far away from being considered ‘exuberant’, says RBI Governor Shakitkanta Das

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Currently debt Development India Far from being considered ‘excessive’ and looking at the absolute numbers, there is not a ‘big gap’ between credit growth and deposit accumulation. RBI Governor Shaktikanta Das said at the BFSI Summit organized by Business Standard on Wednesday.

Das says that at present, credit growth is ‘far from buoyant’ and more stable. Das said when one compares credit growth and deposit growth, it appears to be a wide gap due to base effects, with credit growth picking up after two years of depression, while the deposit growth figure remains relatively high. Growth during epidemic years.

“Just as credit growth is very high due to the low base effect of previous years, deposit growth is also very low due to the base effect of previous years,” he said.

Das admitted that he will be asked about deposits not growing, while credit is growing, and added that if we are heading towards an unsustainable situation, the answer to these concerns lies in growing deposits to sustain credit growth in the medium to long term.

In the fortnight ended December 2, the system posted credit growth of 17.5 percent, while deposit growth lagged at 9.9 percent, news agency PTI reported.

In absolute terms, credit expansion for the year to December 2 was Rs. 19 lakh crore, while deposit growth was Rs. 17.5 lakh crore, which makes it clear that there is not a ‘huge gap’ in the figure, Das added.

He said credit growth, apart from being driven by fundamentals, also points to the underlying fundamentals of the economy.


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