The latest figures published by RBI, the credit growth in the period was Rs 29,433.37 crore, an increase of 0.7 % the previous week. It is based on the previous year, loans grew by 20.4 % up to September 9.

In addition, deposits grew at only Rs 12.935 million rupees, an increase of 0.2 % over the previous fortnight. In a year to year, deposits increased by 17.5 %.

"We expect the growth in income is able to endure the rest of this fiscal year. For example, we focus on sectors such as agriculture and medium-sized enterprises. In order for the agricultural sector, bank credit is still an option financial cheaper right now, "said Bank of Maharashtra, President and CEO, AS Bhattacharya.

RBI had last week raised its rates for the 12th time in 18 months to combat high inflation. Several also reported increases may follow, the expectations of the confusion of the tightening cycle is coming to an end and put him in conflict with their global peers, who focus on the revitalization of low demand.

"We definitely started to see a growing demand for credit now, even if it is a gradual recovery," said a senior official of a bank of staff, on condition of anonymity. "We are confident that the moment because the proceeds of Christmas."

Usually sees an increase in credit growth during the Christmas season begins in August and extends until November, because people ask for more money to buy new cars, consumer durables and houses.

In the middle of the series of rate hikes, the central bank also lowered its forecast for credit growth this fiscal year by 19 % to 18 %. The banks have also lowered their forecasts for growth in credit.

"There's still a lot of consumer demand in the Indian economy, and this is driving loan growth over the previous year. High interest rates may affect the level of sectors such as real estate or a big-ticket loans and lower demand . There may be some impact on small and medium enterprises segment, "says Pralaya Mondale, vice-president (retail funds and credit cards), HDFC Bank.

Bankers said the borrowing decisions of small and medium enterprises that have not been driven by interest rates alone. "They want money at the right time and are willing to pay interest on these loans. These factors will ensure that we maintain the growth of our progress. In retail, particularly in Property Loan is a slowdown in demand. This is because home buyers expect a fall in property prices and delaying their purchasing decisions, "said Bhattacharya.

Source: [Business Standard]