Das said that at present, credit growth is ‘far away’ from enthusiasm and is very stagnant. Das said that when one compares credit growth and deposit growth, it looks like a wide gap due to base effects. Growth during the pandemic years.
“Just as credit growth looks very high due to low base effect of previous years, deposit growth is also very low due to base effect of previous years,” he added.
Das acknowledged that he has been asked about deposits not growing while credit is growing and if we are heading towards an unsustainable situation and said the answer to these concerns would be to maintain credit growth in the medium to long term. There is an increase in the deposit amount for
For the fortnight ended December 2, the system registered credit growth of 17.5 per cent, while deposit growth stood at 9.9 per cent, news agency PTI reported.
Das said that in absolute terms, credit expansion till December 2 had come to Rs 19 lakh crore, while deposit growth stood at Rs 17.5 lakh crore, making it clear that there is no “major difference” in the numbers.
He said that apart from being driven by base effects, credit growth is also indicative of the underlying fundamentals of the economy.