Mumbai, Jan. 14 -- Banks in India added more deposits than loans last year, leading to a softening of the credit-deposit ratio, even as deposit growth failed to keep pace with advances, showed latest data from the Reserve Bank of India (RBI).
The gap between fresh deposits and non-food credit widened to over Rs.2 trillion in 2024, higher than Rs.1.3 trillion in the previous year. Non-food credit is bank credit adjusted for loans given to the Food Corporation of India (FCI). In 2022, per RBI data, banks added more loans than deposits and the gap between the two was Rs.2.6 trillion.
Data for 2023 exclude the impact of the merger of HDFC Ltd into HDFC Bank that added to the banking sector's loans and deposits.
Lenders were troubled by a d...
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