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The RBI projected credit offtake growth to be around 17%-18% this fiscal, as against the earlier estimate of 19%, while deposit growth has been pegged at 17%
Mumbai: Non-food credit offtake went up by just 16.1% to Rs44.99 lakh crore during the year ended 30 December 2011 reflecting the impact of the high interest rate regime, reports PTI.
The offtake stood at Rs38.75 lakh crore during the 12 months to 31 December 2010, the Reserve Bank of India (RBI) data shows.
Experts said the slowdown in credit growth is on account of the high interest rate regime that has been in place for over a year to rein in inflation.
The RBI has raised key lending rates by 350 basis points (bps) through 13 hikes since March 2010 to curb inflation, which has been above the 9% mark since December last year.
The rate of price rise was 9.11% in November.
Deposits rose to over Rs59.89 lakh crore during the 12-month period to 30 December 2011, from Rs51.31 lakh crore during the corresponding period to 31 December 2010. This translates into a growth of 16.7%.
In its first quarterly monetary policy review for FY11-12 in July, the RBI had said credit growth was likely to slow down as a result of the rate hikes.
It projected credit offtake growth to be around 17%-18% this fiscal, as against the earlier estimate of 19%, while deposit growth has been pegged at 17%.
During FY2010-11, bank credit offtake increased by 21.5%, while deposits grew by only 15.5%.
Indian industry has complained that the high interest rate regime has resulted in slowing down of investment and industrial growth.
Economic growth slowed to a nine-quarter low of 6.9% in the July-September period. In addition, industrial growth entered the negative trajectory in October, contracting by 5.1%.