RBI Financial Stability Report: Banks see jump in credit, deposit in 2023

According to the FSR, banks' credit growth stood at 15.4 percent and deposit growth stood at 11.8 percent

Indian banks' credit and deposit growth gathering pace in 2023, the Reserve Bank of India (RBI) has said in its half-yearly financial stability report  (FSR) released on June 28.

The credit growth, which has been rising since early 2022 led by both public sector banks (PSBs) and private banks stood at 15.4 percent on June 2, 2023. The deposits growth, which declined in 2021-22 and early 2022-23, stood at 11.8 percent on June 2, 2023, the FSR data showed.

Credit growth

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

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

Deposit growth

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 current account and
savings account (CASA) deposits," the FSR report.

The financial stability report is a half-yearly publication that offers insights into the developments in the country's financial sector.