Bank credit in India grows 14.5% as on July 29, shows RBI data

New Delhi: Bank credit grew 14.5 per cent year-on-year as on July 29, data released by the Reserve Bank of India on Wednesday showed.

As of July 29, banks’ outstanding loans were at Rs 123.69 trillion, as against Rs 108.00 trillion during the same period last year. Besides, banks’ deposits were at Rs 169.72 trillion, up 9.1 per cent year-on-year from Rs 155.49 trillion.

Figures are provisional and are incorporated in respect of such banks as have not been able to submit final figures, the RBI said.

RBI Governor Shaktikanta Das while reading out the latest monetary policy statement last week said term deposit rates are increasing and it should bode well for the availability of funds with the banks in the context of sustained buoyancy in credit demand.

For the record, the monetary policy committee of the Reserve Bank of India has unanimously decided to raise the repo rate by 50 basis points to above pre-pandemic levels at 5.40 per cent in order to contain the persistently high inflation.

Raising interest typically suppresses demand in the economy, thereby helping inflation to decline.