With the financial year-end fast approaching, banks are working overtime in order to meet up with the Reserve Bank of India's projected deposit and credit growth.
In the second-last fortnight of the current financial year that ended on March 8, the year-on-year, deposit growth stood at 13.15%, short of the RBI's projected 15% for the current fiscal. But, credit growth is better standing at 15.4%, but still short of RBI's projected level of 16%.
Banks are raising deposits aggressively as the banks are falling short of annual business growth projection. Deposits of about 1 lakh crore were raised during the fortnight. Aggregate deposits, including demand and term deposits, rose to Rs 99,124 crore, taking the outstanding deposits to 66.6 lakh crore.
Term deposits increased by Rs 1.12 lakh crore during the fortnight. Loans on the other hand increased by Rs 54,796 crore to Rs 51.8 lakh crore.
After witnessing slow growth in deposits throughout the current financial year, banks are aggressively selling deposits during the last fortnight.