Kolkata: Banks' deposit mobilisation from the public increased 10.6% between November 2023 and November 2024, in tandem with credit growth, latest Reserve Bank of India (RBI) data showed. Term deposits and demand deposits also clocked double-digit growth in the same period.This is a result of banks' relentless effort to mobilise deposits and a fall in credit expansion, especially in the retail side, following the concerns raised by the regulator on the possible overheating"Overall, a better balance is emerging between deposit and credit growth, with the incremental credit-deposit ratio falling to more normal levels from stratospheric heights earlier," RBI said in its state of economy report last month. 116265281In fact, incremental deposit collection outpaced incremental credit growth, the report suggested.Scheduled commercial banks' incremental credit-deposit ratio was as high as 95.8% at end-March 2024. It came down to 82.7% as on November 1 with incremental deposit outpacing incremental credit during August-October, the RBI report said.As per the latest set of data released by RBI Thursday, public deposits with scheduled commercial banks in the country stood at '224.7 lakh crore at the end of November 29, against '203.2 lakh crore a year ago. Of this, demand deposits stood at '26.3 lakh crore, increasing 10.3% year-on-year while term deposits went up 10.6% to '198.4 lakh crore, RBI data showed.Banks' credit also increased 10.6%, to '179.6 lakh crore, up from '162.4 lakh crore a year ago.The figures are based on provisional data, the central bank said.For the past two financial years, credit expanded faster than deposit, which made the RBI worried about a possibility of liquidity mismatch at the structural level. The credit-deposit growth gap was 220 basis points in early September. The gap has now been wiped out, on constant regulatory nudge over the past few months.
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