Bank deposits grew 8.9% year-on-year to Rs 116.45 lakh crore, while bank credit rose by 13.49% to Rs 87,89,259 crore in the fortnight to August 31, Reserve Bank of India data showed.
Bank deposits grew 8.9% year-on-year to Rs 116.45 lakh crore, while bank credit rose by 13.49% to Rs 87,89,259 crore in the fortnight to August 31, Reserve Bank of India data showed. Double-digit growth in deposits has eluded banks for more than a year now with the rate of growth of households savings moderating and more surpluses finding their way into mutual funds.
At the same time, deposit growth has recovered from the lows of 3-5% y-o-y growth witnessed during November 2017-January 2018, when the effect of a demonetisation-induced high base came into play. The latest fortnight for which data is available, ended August 31, saw bank deposits growing at 8.9% to Rs 116.45 lakh crore.
As a share of gross national disposable income (GNDI) deposits have fallen to 2.9% in 2017-18 from 6.3% in 2016-17. In the year-ago fortnight, bank advances stood at Rs 77,44,237 crore. In the reporting period, the growth in advances was higher than the previous fortnight ended August 17, 2018, when it had grown at 12.94% to Rs 86,75,129 crore.
In July 2018, non-food bank credit rose by 10.6% as compared with an increase of 5.3% in July 2017. In recent months, bankers, too, have flagged the slow growth in deposits. Rajnish Kumar, chairman, SBI, said banks losing savings to the markets is a matter of concern. Addressing an event, Kumar observed that while the previous year had seen current account and savings account (CASA) deposits grow as much as 26%, growth had slipped to 9% in the current year. — With PTI inputs