The demand for bank credit continues to remain strong despite the signs of an economic slowdown. The scheduled banks' advances rose by 24.9 per cent, on a year-on-year basis till July 4 this year, with outstanding credit of Rs 24,90,327 crore (Rs 24,903.27 billion).

Bank credit grew Rs 15,731 crore (Rs 157.31 billion) during the fortnight, the Reserve Bank of India [Get Quote] said. Bankers partly attributed the rise in credit to the higher demand for funds from oil companies. Also, some companies have advanced their plans to use the sanctioned credit limits fearing a further rise in lending rates.

The high level of credit growth is likely to put pressure on RBI as the existing growth is above the year's target rate of 20 per cent.

Deposits grew 21.7 per cent to Rs 34,12,625 crore (Rs 34,126.25 billion) as on July 4 this year over Rs 28,03,488 crore (Rs 28,034.88 billion) a year ago.

In the last 15 days, deposits of all scheduled banks rose around 2 per cent from Rs 33,54,108 crore (Rs 33,541.08 billion) to Rs 34,12,625 crore (Rs 34,126.25 billion). Most banks raised rates from July 1.