Indian banks' loans rose 7.9 percent in the two weeks to November, 11 from a year earlier, while deposits rose 11.7 percent, the Reserve Bank of India's weekly statistical supplement showed on Friday. This happened after the government announced the demonetisation scheme.
Demonetisation brought more deposits to banks and give them more maneuverability in giving loans. It will also provide a chance to the realty industry to offload its inventory.
Outstanding loans fell 591.00 billion rupees (USD8.64 billion) to 73.53 trillion rupees in the two weeks to November, 11.
Non-food credit fell 439.70 billion rupees to 72.66 trillion rupees, while food credit fell 151.40 billion rupees to 870.90 billion rupees.
Bank deposits rose 1.31 trillion rupees to 101.15 trillion rupees in the two weeks to November, 11.