Credit off-take continued its upward trend, growing by 19.2% year-on-year to reach Rs. 167.1 lakh crore by the fortnight ending June 14, 2024. This growth is largely attributed to the impact of HDFC’s merger with HDFC Bank and the increasing demand for personal loans. Excluding the merger impact, credit expanded by 15.6% year-on-year, closely mirroring last year’s growth rate of 15.4%. However, sequentially, credit saw a marginal decline of 0.4%. The personal loan segment, especially driven by home loans, continues to show robust growth, according to a CareEdge Ratings report. CareEdge estimates the credit growth to be in the range of 14%-14.5% during FY25.
Deposits increased by 12.6% y-o-y, reaching Rs. 209.0 lakh crore. However, there was a sequential decline of 0.9%. Excluding the impact of the merger, deposit growth stood at 12.1%. Over the past year, deposits expanded by Rs. 23.4 lakh crore. Time deposits showed stronger growth at 12.8%, while demand deposits grew by 10.7%.
Deposit growth although improving has lagged in credit growth and is anticipated to play a significant role in FY25 as banks take additional efforts to shore up their liability franchise and ensure that deposit growth does not constrain the credit offtake.
