Growth Rates and Responsiveness of Credit to the Changes in Deposits in the Indian Banking

An attempt has been made in the present paper to examine the Growth Rates of Deposits, Credit Extended and Responsiveness of the Credit Extended to the Changes in the Deposits for both the Pre and Post – Globalization Periods in India using the time series data. The analysis based on the regression results show that the numerical values of the elasticity of the credit extended with respect to deposits for different banks under consideration are more than unity during post-globalization period showing elastic nature of the credit extended.