Bank credit growth improved to 6.1% year on year for the fortnight ended 3 July even as deposit growth declined, according to Reserve bank of India’s latest data. As on 18 June, bank credit growth stood at 5.8% year on year. Retail and agriculture sectors continue to drive the overall credit growth while slower growth in industry and services segments restricted the overall credit growth. In the previous fortnight deposit growth stood at 10.3%. The liquidity surplus can be primarily attributed to deposit growth consistently outpacing credit growth.

Source: Mint July 18, 2021 17:15 UTC