This November saw the highest bank loan growth in three years. This may be an indicator that businesses have increased their output after the implementation of GST. Loans increased by close to 10%, amounting to Rs.79.6 lakh crore. Last year, during the same period, total loans had only risen by 6.6%.
Data also showed that there is a surge in corporate loans. Up until October, the loan growth was primarily driven by retail loans. Post October, the loan growth was largely driven by corporates.
Bankers have also speculated that a substantial growth in loans will occur during the second half of this fiscal year and also has several reasons to support this claim.