Credit growth continues to outpace deposits for PSU banks

Public Sector Banks (PSBs) in India are witnessing credit growth outpacing deposit growth, signaling strong demand for loans. Data shows that credit growth rose to over 15% year-on-year, while deposit growth lagged behind at approximately 10%. This trend reflects a robust recovery in the economy and increased borrowing by businesses and consumers. However, banks are urged to manage liquidity prudently to avoid potential risks from overextending credit.