Banks witness robust deposit accretion and credit demand in reporting fortnight

Scheduled Banks reported deposit growth in the fortnight ended 16th June 2023 reports continue to have higher deposit rates even as they get good inflows due to deposit of Rs 2,000 notes, which The Reserve Bank of India (RBI) is currently withdrawing from the banking system.

• Read also: Notes of ₹1.8 crore worth ₹2000 have been returned to date

Credit growth also jumped on the heels of strong demand from the retail, non-bank financial firms and infrastructure sectors.

Deposits and credit of scheduled banks increased by ₹3,03,283 crores and ₹4,17,571 crores, respectively, in the two-week reporting period, according to RBI data on the Center for Scheduled Banks in India statement.

• Read also: Pulling out a note of 2,000 rupees, a wise move

After the increase in deposits, the banks’ investment in Government Securities (G-Secs) and Government G-Secs also increased by Rs.1,76,019 crore to meet the statutory liquidity ratio requirement.