Is there a clear relationship between credit growth and market growth?

The fastest growing cities out of 112 top cities of India

 

Growth rates (CAGR)	Market Size Growth Rate	Deposit Growth Rate	Credit Growth Rate
Silvassa	23	14	71
Gandhinagar	22	10	54
Bokaro	19	7	-4
Surat	17	11	18
Thiruvallur	17	11	28
Agartala	16	13	32
Chandigarh	16	13	7
Thanjavur	16	5	20
Kohima	15	9	26
Noida	15	28	43

The slowest growing cities out of 112 top cities of India

 

Growth rates (CAGR)	Market Size Growth Rate	Deposit Growth Rate	Credit Growth Rate
Guntur	8	7	16
Gwalior	8	6	9
Jabalpur	8	3	0
Nellore	8	7	22
Varanasi	8	6	13
Kanpur	7	7	13
Kavaratti	7
Vijayawada	7	7	24
Dhanbad	6	12	15
Kancheepuram	2	16	22

With the exception of Bokaro, and to a certain extent Chandigarh, the 10 fastest growing cities grew on the back of high credit growth. However, this is not a general rule as a look at the slower growing cities reveal. Cities such as Vijaywada, Kancheepuram, Nellore and Guntur did not display a robust growth in spite of high credit growth. Deposit growth, on the other hand is an effect of market growth and in general grows in the wake of market growth. This is generally borne out by the facts, though a few notable exceptions exist – Thanjavur, Kohima, Bokaro (among the fast growing cities) and Dhanbad and Kancheepuram (slow growing cities)

data source: Indicus Analytics