Credit Growth Is Chugging Along

GROSS BANK CREDIT offtake grew 20.2% year-on-year (YoY) in March 2024 propped up by the impact of the merger between HDFC Bank and its parent, HDFC. Excluding the merger, YoY growth stood at a little lower at 16.3%, yet higher by 130 bps over last year’s 15%, according to CareEdge Ratings. Interestingly, over the 12-month period, credit has grown at 20.1% YoY to ₹164.3 lakh crore. Lending to businesses (industry + services) increased by 16.3% in March 2024 compared with 12.5% in March 2023. Excluding the merger, in B2B lending, the growth was higher at 14.6%, up 210 bps against March 2023. The growth reflects a robust expansion in the credit market, underlining the strength and resilience of the banking sector amidst a looming global slowdown.