Non-food credit by bank has continued to grow above 15% for three consecutive fortnights, on a lower base, according to data released by the Reserve Bank of India (RBI). The outstanding non-food credit inched higher by 15.96% year-on-year (y-o-y) during the fortnight ended August 26. The non-food credit outstanding stood at Rs 124.3 trillion during the fortnight against Rs 107.2 trillion in the same period a year ago. Bank credit growth, despite the rising lending rates, continues to accelerate due to a revival at a broad-based level across agriculture, industry, services and personal segments. There is likely to be strong multiplier effect and which will spur demand for infrastructure financing due to major infrastructure development plans by the Government. Total deposits grew by 9.5% y-o-y, trailing the rate of loan growth. RBI has already taken initiative for withdrawal of excess liquidity. Thus, higher loan growth compared to deposit growth, is likely to further drain of liquidity.