The latest data released by Reserve Bank of India has reported that the Indian banks have been able to fulfill the target set for deposit as well as lending by RBI for the fiscal ended March 2010.
The banking industry reported a credit growth of 16.5% while the deposits grew at 17.1%. This shows that the banks have just touched the target of 16% credit growth and 17% deposit growth set by the RBI.
Scheduled Banks' Statement of Position in India, published by the RBI every fortnight showed that the loan book of banks for the fiscal 2010 amounted to Rs. 33.33 trillion as compared to the figures last year which read Rs. 28.6 trillion, thereby showing a growth of 16.5%.
The growth trend shown by Indian banks has raised hopes that they would be able to meet the target of 20-22% for FY'11.
The credit growth target set by RBI was revised twice last fiscal owing to global meltdown which forced Indian firms to slow the pace of operations and avoid taking credit.
With the scaling up of the economy, the firms are also on track of increasing their operations.
The credit growth of Indian banking industry stood at 27.6% in fiscal 2007, declined to 21.6% in fiscal 2008 and to 17.3% in fiscal 2009 and finally fell to a 12-year low of 9.49% in October 2009.
In correspondence to the recovery model pursuing in the economy, the banks have decided that any changes in rates would only be brought after the annual monetary policy has been announced.