But, the annual loan growth is at 19.3%, above the central bank's comfort levels of 18% for the financial year 2011-12. Though loans to industry are still growing more than previous year's levels, much of the loan growth during the first half of this fiscal has been driven by retail loans, particularly home and personal loan.

Besides, banks have lent almost 46% higher to the NBFC sector and the commercial real estate sector this year, according the Reserve Bank of India data on sectoral deployment of bank credit. Bankers say loans are less buoyant this year because corporates have managed to raise cheaper funds abroad on account of lower interest rates in the advanced markets.

Deposits, too, dipped byRs 5,946 cr during the fortnight to Rs 56,18,986 cr as on October 21. While demand deposits dipped by Rs 5,787.05 cr, term deposits rose marginally by Rs 153 cr. The dip in deposits has happened despite higher returns on term deposits. This could be largely due to depositors preferring to spend money for Diwali festivities instead of parking funds as deposit with banks, banker said.