As long as gap between deposits and loans is positive, we have no issues. But a negative gap is a concern and banks that are perennial borrowers in the call money market face more problems, said Moses Harding, the head of asset liability management at IndusInd Bank.
Data from the RBI show the gap between deposits garnered and loans disbursed was the highest in the 1-3 year and 3-5 year segments in 2011-12.
In that year, banks garnered around R16 lakh crore of deposits in 1-3 year tenures and they disbursed loans of around R18 lakh crore. In the 3-5 year tenures, deposits garnered were just around R5 lakh crore and loans disbursed were about R6 lakh crore.
The worsening of ALM position of banks was stark in 2011-12 as in the previous financial year, banks had garnered more deposits than they had disbursed loans in the 1-3 year segment.