Mumbai: Non-food credit offtake went up by just 16.1 per cent to Rs 44.99 lakh crore during the year ended December 30, 2011, reflecting the impact of the high interest rate regime.

The offtake stood at Rs 38.75 lakh crore during the 12 months to December 31, 2010, RBI data shows.

Experts said the slowdown in credit growth is on account of the high interest rate regime that has been in place for over a year to rein in inflation.

The RBI has raised key lending rates by 350 basis points through 13 hikes since March, 2010, to curb inflation, which has been above the 9 per cent-mark since December last year. The rate of price rise was 9.11 per cent in November.

Deposits rose to over Rs 59.89 lakh crore during the 12-month period to December 30, 2011, from Rs 51.31 lakh crore during the corresponding period to December 31, 2010. This translates into a growth of 16.7 per cent.

In its first quarterly monetary policy review for FY'12 in July, RBI had said credit growth was likely to slow down as a result of the rate hikes.

It projected credit offtake growth to be around 17-18 per cent this fiscal, as against the earlier estimate of 19 per cent, while deposit growth has been pegged at 17 per cent.

During FY2010-11, bank credit offtake increased by 21.5 per cent, while deposits grew by only 15.5 per cent.

Indian industry has complained that the high interest rate regime has resulted in slowing down of investment and industrial growth.

Economic growth slowed to a nine-quarter low of 6.9 per cent in the July-September period. In addition, industrial growth entered the negative trajectory in October, contracting by 5.1 per cent.