Bank credit grows 15.5% YoY in February 24 to Rs.134.5 Trillion

Current context: A report released by RBI stated that bank credit grew 15.5% Year-on-Year in February 24 to Rs.134.5 trillion. The credit growth is driven by retail demand and growth in NBFC’s. Inflation also affects the credit growth.

• Credit growth has moderated from 16.5% in January. It was 9% in the previous year.
• Deposit growth in the banking sector is at 10.1% year-on-year for fortnight. The preceding fortnight ended in 10th February.
• Deposit accretion grew by 10.2%.
• In FY24, credit growth will be at a moderate level because of interest rates and capital loans by companies.
• The credit growth has reduced to 540 basis points from an earlier of 800 basis points.

Question:

Q.1 Credit growth has moderated from _____ in January.
a. 16.5%
b. 18%
c. 20%
d. 14%