Credit rating agency -- CARE Ratings in its latest report has said that the credit offtake in India remained at elevated levels of 17.5 per cent year-on-year (YoY), reporting robust growth for the fortnight ended December 2. The credit offtake expanded by over 1,000 bps.
According to report, the growth is driven by a low base, non-banking finance companies (NBFC), retail credit, higher working capital demand driven by inflation and improvement in capacity utilisation ratio, and rising demand for fresh capex. Further, it said the benefit of a lower base is expected to ease in the next few fortnights, optically leading to lower growth rates.
Over the last couple of years, (i.e., from February 28, 2020), it said credit offtake has mostly overcome the Covid induced lag and has grown by around 29.7 per cent to almost catch up with deposit growth of 31.4 per cent over the period. In absolute terms, credit outstanding stood at Rs 131 lakh crore as of December 2, rising by Rs 19.5 lakh crore over the last 12 months.
