New Delhi, November 5 (IANS). Compared to December 2023, bank deposits increased by 8.6 percent to Rs 218.1 lakh crore as of October 18. A report released on Tuesday said that for the first time in the last 30 months on an annual basis, deposit growth has overtaken credit take off.
CareAge Ratings report said that the reason for this increase has been the increase in fixed deposit rates of Scheduled Commercial Banks (SCB). Overall, deposits have increased by Rs 17.3 lakh crore in the last nine months.
“Deposits remain key in FY25 as banks step up efforts to strengthen their liability franchises. Banks are also raising funds through certificates of deposits at higher costs,” the report said.
The credit deposit (CD) ratio had been around 80 percent since September 2023. The CD ratio witnessed a marginal increase to 79.0 per cent for the fortnight ended October 18, as against 79.5 per cent in December 2023.
Moreover, when comparing the growth rate with December 2023, deposit growth has outpaced credit offtake. Credit offtake increased by 8 per cent to Rs 172.4 lakh crore as of October 18 compared to December 2023.
“Mortgage and MSMEs are the major contributors to this growth,” the report said.
The short-term weighted average call rate has declined to 6.43 percent as of October 18 this year, compared to 6.74 percent as of October 27, 2023, indicating surplus liquidity.
On a year-on-year basis, credit witnessed a growth of 11.7 per cent, down from last year’s rate of 19.7 per cent. Meanwhile, deposits saw a growth of 11.8 per cent, compared to 13.4 per cent last year.
—IANS
SKT/CBT
