Bank credit rose 14.5% year-on-year as of July 29, according to data released Wednesday by the Reserve Bank of India.
As of July 29, outstanding bank loans stood at Rs 123.69 trillion, compared to Rs 108.00 trillion during the same period last year.
Additionally, bank deposits stood at 169.72 trillion rupees, up 9.1% year-on-year from 155.49 trillion rupees.
The figures are provisional and are incorporated with respect to banks that were unable to submit final figures, the RBI said.
RBI Governor Shaktikanta Das while reading the latest monetary policy statement last week said term deposit rates were rising and this should bode well for the availability of funds from banks. in the context of sustained dynamism in credit demand.
For the record, the Reserve Bank of India’s Monetary Policy Committee unanimously decided to raise the repo rate 50 basis points above pre-pandemic levels to 5.40% to contain inflation still high.
Raising interest rates generally suppresses demand in the economy, thus contributing to lower inflation.
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