Brake imposed on loan speed of banks!
The Reserve Bank of India said on Wednesday that bank credit growth slowed down to 15 percent in the fortnight ending April 15. According to the latest data, the pace of lending slowed down on year-on-year (YoY) basis to 14.88 per cent in the fortnight ended April 15, compared to 15.96 per cent in the previous fortnight. During this reporting period, total credit declined by 2.06 per cent or Rs 4.51 lakh crore.
Bank credit stood at Rs 214 lakh crore in the fortnight ended April 15, compared to Rs 218 lakh crore in the previous 15-day period ending March 31.
186 lakh crore credit
According to RBI data, total credit stood at Rs 186 lakh crore in the fortnight ended April 18 last year. During the fortnight ended March 31, bank credit grew at the fastest pace in the last two financial years as banks recorded strong growth in both loans and deposits, in a race to meet their balance sheet targets before the end of the financial year. Bank credit growth has remained in double digits for more than seven consecutive months, reflecting the sustained momentum in lending activities.
Credit expansion picked up pace following the government's move to rationalize the Goods and Services Tax (GST) structure in September last year. This consecutive double-digit growth indicates a revival in credit demand from both retail borrowers and corporates in recent months, underscoring improved economic activity across sectors and strong funding requirements.
Increase in deposits
Meanwhile, in the fortnight ending April 15, bank deposits increased by 12.12 percent on a year-on-year basis. In absolute terms, deposits stood at Rs 261.88 lakh crore in the 15-day period ending April 15 this year, while it stood at Rs 233.56 lakh crore in the fortnight ending April 18, 2025. In the reporting period, banks' investment in state and central government securities increased to Rs 70.64 lakh crore, compared to Rs 68.49 lakh crore recorded a year ago.
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