(ET)
RBI Governor Shaktikanta Das will meet the heads of public sector banks on November 16 to discuss the issue of sustainability of credit growth in India. The issue of slower deposit growth amid burgeoning credit offtake could be taken up, according to a note shared with bankers, Credit growth in India has touched record highs driven mainly by pent up demand. The RBI has been raising interest rates to check the price rise in the economy.
As against a credit growth of 18%, deposits have grown only 9.5%. The sale of dollars by the RBI to stabilise the rupee exchange rate will also put pressure on the systemic liquidity.
