While this significant rise has reduced the gap between banks credit and deposit growth from over 700 bps to 300 bps, it remains negative, , bank deposit growth, jefferies, tight liquidity, credit
Currency with the public has dropped by Rs 1.56 lakh crore to nearly Rs 32.2 lakh crore as on July 28 from Rs 33.7 lakh crore on May 19. The decline has been due to RBIs move to withdraw Rs 2,000 notes — with most now deposited in banks.
Small-savings inflows are down to a trickle
Satya Sontanam
BL Research Bureau |
Updated on
February 27, 2021
Growth in collections in post office small-savings schemes is set to touch a low in FY21, going by the Revised Estimates in the Budget documents.
The collections are pegged at ₹8.7-lakh crore, up just 3 per cent over FY20. This pales when compared to the strong double-digit growth in the last few years. This is the lowest growth in the last decade, barring FY12, when collections dipped by 19% y-o-y.
At that time, investor interest had shifted to bank deposits, thanks to the 9-9.25 per cent returns offered on bank deposits then. FY12, thus, saw a robust 13.8 per cent growth in bank deposits (over FY11) at the cost of small savings schemes. Investors scouted for better rates in FY16 again, when collections in small-savings schemes jumped by a whopping 46 per cent y-o-y, the best show in the last decade. While equity markets remained lacklustre and bank depos
Bank credit grows 3.2% to Rs 107.05 lakh crore in first nine months of FY21
Bank deposits rose 8.5 percent to Rs 147.27 lakh crore in the April-December 2020 period as against an increase of 5.1 percent a year ago, according to the recent data released by the Reserve Bank of India. PTI January 17, 2021 / 03:03 PM IST
Bank credit grew 3.2 percent to Rs 107.05 lakh crore in the first nine months of the current financial year, against a growth of 2.7 percent registered in the corresponding period of 2019-20. In the fortnight ended March 27, 2020, bank advances stood at Rs 103.72 lakh crore.
Bank deposits rose 8.5 percent to Rs 147.27 lakh crore in the April-December 2020 period as against an increase of 5.1 percent a year ago, according to the recent data released by the Reserve Bank of India. The sharp accretion in deposits during the year was due to the safe haven appeal of banks.