Forecast upbeat on credit offtake in 2024
Bank credit offtake rises 20.3% to Rs159.7 lakh cr in 2023; Merger of HDFC with HDFC Bank, growth in personal loans drove the merger: CareEdge Ratings
Continued Push For Retail Credit
- If impact of the merger is excluded, credit growth was 16.1%
- Deposits grew 13.1%
- Economic expansion
- Increasing digitalisation
Kolkata: Outlook for bank credit offtake remains positive in 2024, while deposit growth is expected to improve, according to the latest research report of CareEdge Ratings. The report said that credit offtake continued to grow, increasing 20.3 per cent year-on-year to reach Rs159.7 lakh crore for the fortnight ending January 12, 2024. The rise was due to the impact of the merger of HDFC with HDFC Bank along with growth in personal loans. If the impact of the merger is excluded, credit grew at a lower rate of 16.1 per cent year-on-year for the fortnight compared to last year’s growth of 16.5 per cent, the report said. Deposits also grew 13.1 per cent year-on-year the fortnight (including the merged impact).
The report said that deposit growth is expected to improve in 2024. The outlook for credit offtake continues to remain positive in 2024 supported by factors like economic expansion and continued push for retail credit supported by increasing digitalisation, according to the report.
