According to Reserve Bank of India data, bank deposits has grown 10 per cent or Rs 6 lakh crore, where as credit swelled 6 per cent or Rs 2.73 lakh crore in the first half of the current financial year.
As the credit growth slowed and deposits grew in the first half of this financial year, there has been a gap between growth in the bank deposits and outstanding credits.
In the same period of last financial year, the bank deposit had grown 9.7% and credit by 7%.
RBI is aiming at 16 per cent growth in the deposits and 17 per cent in the credit by the end of this financial year.
Some of the bankers are expecting to see credit growth in the second half of this fiscal because of the upcoming festive season. And to make most of the festive seasons, most of the banks like SBI and ICICI Bank has lowered their lending rates to woo more customers.