Mumbai, Sept 18 (KNN) The corporate as well as consumer demand for credit is still sluggish as the annual credit growth in the banking system fell to 9.6 per cent, its lowest level since November 2009.

This was the first time since October 2009 (9.01 per cent) that growth in bank credit growth fell below 10 per cent.

The bank credit growth fell to 9.6 per cent at Rs 61,40,925 crore for the fortnight to September 4, data from the Reserve Bank of India showed.

Deposits, however grew at a healthy 14 per cent to Rs 81,32,714 crore during the period under review. Deposits of commercial banks stood at Rs 71,47,778 crore in the same period last year.

Demand deposit grew 14.64 per cent to Rs 7,46,002 crore as of September 5 from Rs 6,50,705 crore in the year ago period.

Time deposit rose 13.69 per cent to Rs 73,86,712 crore in the period as against Rs 64,97,073 crore last year.

Bankers are hoping that demand for loans will pick up in the second half of the current fiscal year during the upcoming festive season.

Earlier this week, State Bank of India cut the interest rate on deposits maturing between one year and less than three years by a quarter of a percentage point to 8.75 per cent. (KNN/SD)