High interest rates being offered by banks on deposits are aiding resource mobilsation even as high lending rates appear to be slowing bank credit, going by the latest RBI data.
In the fortnight ended February 24, incremental deposits garnered by banks outstripped loans they disbursed.
All scheduled banks mopped up deposits aggregating ₹88,974 crore in the reporting fortnight. They disbursed loans aggregating ₹33,529 crore, as per the RBI’s scheduled banks’ statement of position.
Experts say the monetary policy transmission (as a result of a cumulative 250 basis point hike in the repo rate since May 2022) seems to be playing out on the deposit and loan fronts.