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Reserve Bank of India (RBI) in its latest data has showed that bank credit increased by 15 per cent year-on-year (YoY) in the fiscal ended March 2023 (FY23) as against 9.6 per cent YoY in the previous financial year (FY22). FY23 credit growth is highest since 2011-12, when it was 19.3 per cent. Bank deposits expanded 9.58 per cent YoY in FY23, as against 8.9 per cent YoY growth seen in FY22.

Data further showed that bank deposit mobilisation lagged behind credit disbursements in FY23. They raised Rs 15.78 trillion through deposits in FY23, against Rs 13.51 trillion raised in FY22. The credit in absolute terms rose Rs 17.83 trillion in FY23, up from Rs 10.43 trillion in FY22. Credit offtake was strong for most of FY23, but the challenge was in garnering additional resources amid tightening liquidity in the aftermath of a change in the RBI’s stance and hike in policy repo rates.

According to the RBI’s Scheduled Bank’s Statement of Position in India, the outstanding credit stood at Rs 136.75 trillion at the end of the last fortnight of FY23 (March 24, 2023), up from Rs 118.91 trillion a year ago (March 25, 2022).