Bank credit growth, which has been rising since early 2022, stood at 15.4% on 2 June 2023, according to the Reserve Bank of India’s Financial Stability Report. This was led by both public sector banks (PSBs) and private banks. 

Credit growth was boosted by agriculture, services and personal loans, which grew faster than those for the industrial sector.

Personal loans posted a growth of 22.2%, wherein all major segments such as housing, credit card receivables, vehicle/ auto loans, education loans, registered robust growth, the report said.

Deposit Growth

Deposit growth, which declined in 2021-22 and early 2022-23, stood at 11.8% on June 2, 2023, the FSR data showed.

The deposit growth was largely driven by private banks. "In the rising interest-rate cycle, term deposits have garnered

healthy accretions at the cost of CASA (current account savings account) deposits," the report said.