Bank deposits and advances increased in the reporting fortnight ended January 27th after declining in the preceding fortnight, according to Reserve Bank of India data.
Deposits of all scheduled banks increased by ₹43,718 crore in the reporting fortnight against a decline of ₹56,590 crore in the preceding fortnight ended January 13th, according to RBI’s Scheduled Banks’ Statement of Position in India.
Within the incremental growth in deposits in the reporting fortnight, demand deposits surged by ₹79,993 crore while time deposits declined by ₹36,275 crore.
Referring to the increase in demand deposits at a time when Banks’ have increased term/time deposit rates to attract deposits, Madan Sabnavis, Chief Economist, Bank of Baroda, said it could be due to maturing short-term bulk deposits being temporarily parked in demand deposits.
Credit of all scheduled banks increased by ₹67,502 crore in the reporting fortnight against a decline of ₹19,685.5 crore in the preceding fortnight ended January 13th.
Overall, in the December 30, 2022, to January 27, 2023 period, bank deposits declined by ₹12,814 crore while credit increased by ₹44,878 crore.