Bank credit and deposits declined in the reporting fortnight ended May 20 after posting robust growth in the preceding fortnight.
The outstanding credit of all scheduled banks declined by ₹13,603 crore in the reporting fortnight ended May 20 against a growth of ₹81,070 crore in the preceding fortnight ended May 6, per RBI’s Scheduled Banks’ Statement of Position.
The outstanding deposits of all scheduled banks declined by ₹1,24,231 crore in the reporting fortnight against an increase of ₹69,277 crore in the preceding fortnight.
According to banking experts, short-term advances that banks typically build up in the run-up to financial year-end may have been repaid. Further, short-term deposits could have matured.
Overall, in the current financial year so far, the outstanding credit of Banks has increased by ₹1,38,761 crore against a de-growth of ₹1,27,925 crore in the year-ago period.
The outstanding bank deposits in the current financial year increased by ₹1,06,190 crore against an increase of ₹50,438 crore in the year ago .