Broad money supply - M3 - growth has decelerated from 21.5% in 2006-07 to 16.8% in 2009-10, mainly due to a deceleration in the growth of aggregate deposits from 22.3% to 17.1% between the same two years. The growth of demand deposits, after touching a low of 0.5% in 2008-09 increased to 22.8% in 2009-10. Banking data reveal that the growth of bank credit as also non-food bank credit showed similar trends. The growth of bank credit decelerated from 37.0% to 16.7% and that of non-food credit from 38.4% to 16.9%, both between 2005-06 and 2009-10.
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