Mumbai: Bank credit growth remained in double digits, rising 14.41 per cent year-on-year for the fortnight ended January 31, according to data released by the Reserve Bank of India on Friday.
Non-food credit expansion has stayed above 10 per cent for five straight months, signalling a revival in demand from both retail borrowers and corporates. In July, growth was subdued at under 10 per cent, reflecting cautious corporate borrowing and measured retail expansion. August saw a transition as growth briefly crossed the 10 per cent mark.
The uptrend gathered pace from September after the GST Council approved a simplified two-tier tax structure of 5 per cent and 18 per cent, boosting business sentiment. Credit growth strengthened through October and November, moving past 11 per cent on festive demand, retail loan expansion and higher trade financing.
Momentum accelerated in December, touching 14.39 per cent by month-end, driven by stronger corporate drawdowns. The trend continued into January despite brief mid-month moderation.