The year-on-year growth in credit offtake rose sharply to over 16% by the end of March 2024, up from below 6% in March 2021, excluding the impact of the HDFC and HDFC Bank merger. Meanwhile, deposit growth increased modestly to around 13% from 11% during the same period. To attract deposits, banks raised deposit rates faster than the interest rates on loans, which has exerted pressure on net interest margins.
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