Bank Credit Growth Remains Double-Digit for 7th Week After GST Cuts

• Bank credit growth maintained double digits for the seventh consecutive week, reaching 11.42% year-on-year by November 28.
• This sustained credit surge began after the government's GST rate reductions in early September.
• The GST Council approved a new two-tier structure (5% and 18%) on September 3, targeting common and middle-class consumers.
• Bank credit reached Rs 200.11 lakh crore as of November 28, up from Rs 179.59 lakh crore a year prior.
• The robust credit growth indicates a rise in demand, particularly consumption-linked borrowing, following the GST cuts.

Why It Matters: Sustained credit growth post-GST cuts suggests improving economic demand.