MUMBAI: The merger of mortgage lender HDFC with HDFC Bank has helped overall bank borrowings in the country to reach their highest level in history while bank credit growth has hit a 12-year high.
Overall bank borrowings stood at a whopping Rs 8.2 lakh crore as on July 14, a day after the record date for the merger, the latest data published by the Reserve Bank of India (RBI) showed. This is Rs 2.7 lakh crore higher than the previous record high posted on October 21, 2022.
On a fortnightly basis, bank borrowings have shot up by 73% as on July 14. Bank borrowings had crossed the Rs 5 lakh crore mark for the first time in FY23.
“Since the HDFC liabilities were largely funded through borrowings rather than deposits, after the merger with HDFC Bank, the data is showing such a leap in the borrowing numbers and it will continue to show high borrowing numbers as long as they are maintaining such liabilities through borrowing,” said Soumyajit Niyogi, director at India Ratings & Research (Ind-Ra).