Bank Loans Surge 11.5%, Deposits Up 10.2%: RBI Data Signals Strong Momentum

RBI's latest fortnightly data highlights sustained banking expansion, with loan growth exceeding deposits for the third straight period. This divergence signals robust corporate and retail borrowing amid economic recovery, supported by ample liquidity and RBI's steady policy stance.

Key Highlights

Credit Expansion: Loans rose 11.5% YoY to Nov 28, driven by MSME and retail segments.

Deposit Growth: Banks added 10.2% YoY in deposits, maintaining healthy CASA ratios.

Forex Strength: Reserves climbed to $687.26B from $686.23B, bolstering rupee stability.

Zero Govt Borrowing: Federal government has no outstanding ways and means advances with RBI.

Policy Context: Supports RBI's growth-inflation balance amid global uncertainties.

Source: Reserve Bank of India (RBI) weekly statistical supplement, economic data release.