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Economy

Bank Credit Growth at 19.5%

As on 18th June, Bank credit growth is 19.5% and the highest since Jan 2009.

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There will be a new data point tomorrow. Strong bank credit growth is good for the economy, but in a time of huge inflation it might not be considered good. Plus, a bulk of that credit growth will be in the BWA and 3G auctions recently (nearly 3% of overall figure) so we’ll have to see it move beyond 20%. A rate hike is expected on July 27th; at this point, high bank credit growth will only ensure that hike happens.

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