FY23 bank credit growth highest since FY12, up 15%,: RBI data

FY23 bank credit growth highest since FY12, up 15%,: RBI data: According to the Reserve Bank of India (RBI) data, the Bank credit rose by 15% year-on-year (YoY) in 2022-23 (FY23), against 9.6% YoY in 2021-22 (FY22). FY23 credit growth is the highest since 2011-12, when it was 19.3%. Bank deposits expanded 9.58% YoY in FY23, against 8.9% YoY growth seen in the previous financial year (FY22). The outstanding credit stood at Rs 136.75 trillion at the end of the last fortnight of FY23 (March 24, 2023).

April 2023 Current Affairs Quiz

The RBI data 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.

Bankers said 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.