Mumbai, Jan 8 (KNN) Bank borrowings surged by an average of two-thirds last year, reaching Rs 6.39 lakh crore from January 13 to December 15, 2023, according to Reserve Bank of India (RBI) data.

This 67 per cent increase compared to the same period in 2022 was influenced by the central bank's liquidity measures to control consumer prices, heightened credit demand, and slower deposit growth.

The merger of HDFC Bank with mortgage-lending pioneer HDFC in mid-July also contributed to the rise in borrowings for mainstream lenders.

The figures primarily represent short-term funding routes, including interbank repo operations.

The trend of robust credit growth surpassing deposit growth has persisted since April 2022, prompting banks to explore borrowing options to maintain asset liability management.

Fortnightly bank borrowings in 2023 reached an all-time high of Rs 8.46 lakh crore on September 8, exceeding the 2022 high of Rs 5.49 trillion.

(KNN Bureau)