Indian bankers sounded optimistic about achieving the Reserve Bank of India's target of 20 per cent credit growth for the year as the country is now poised for a revival in credit demand.

Talking to reporters on Monday after the banker's customary meeting with the top officials of the central bank, O. P. Bhatt, Chairman, State Bank of India said that considering the present economic conditions, credit growth would be better than last year.

In such a case achieving RBI's target would not be a very big task.

Last year the banks managed to go past the set target marginally. As against a target of 16 per cent for the fiscal, banks managed a credit of 16.5 per cent.

As per Bhatt, while the credit growth is already taking a good shape, it would be soon followed by growth in deposits as banks would have to push deposits by increasing rates to meet the escalating credit demand.

Bhatt also assured that the ongoing liquidity crunch would ease out by the end of this month. As per him, liquidity condition is already improving and moving forward by August situation would be a lot more comfortable.