Credit growth of banks spikes up to 16.8% in December quarter

Credit growth of banks spikes up to 16.8% in December quarter

Indian banks’ credit growth doubled to 16.8% in the October-December quarter from a year earlier, data released by the Reserve Bank of India (RBI).

Bank credit had expanded by 8.4% in the quarter ended December 2021 and 17.2% in the quarter ended September 2022, as per the data.

The growth in credit was led by bank branches in metropolitan centres, which accounted for nearly 60% of the total credit by banks, the RBI said. Urban, semi-urban and rural centres also recorded double-digit credit growth, it added.

The growth of state-owned lenders’ credit portfolios jumped, rising by 15.7% during 2022 as compared with 4.7% in 2021. Corresponding growth for private banks remained higher, however, at 19.1%, from 13.1% in 2021, as per the data.

With India’s economy on the mend following the COVID pandemic, credit offtake has improved and most banks now expect double-digit credit growth for the current financial year ending in March 2023.