Although scheduled commercial banks have reported a rise in total deposits on a y- o- y basis as on May 21, it has shown a decline on fortnightly basis.
The latest reports by RBI reveal that the total deposits of the banking sector increased by 14.2%, standing at Rs 45,26,220.20 crore as on May 21, 2010, as against to Rs 39,64,800.47 recorded on May 22, 2009.
The total deposits, however showed a dip by Rs. 4,997.08 crore to Rs 45,26,220.20 crore as compared to Rs 45,31,217.28 crore registered on May 7, 2010.
The scenario was different a fortnight back when the total deposits rose by by 14.7% to Rs 45,31,217.28 crore as on May 7, 2010 as against Rs 39,49,781.52 crore registered on May 8, 2009.
State Bank of India CFO SS Ranjan told FE, "Such fortnightly decline happens, at the end of every fiscal as lots of government money flow in to the system. Hence the fresh demand for deposit goes down during this period every year. However, going forward, I do believe that it will start increasing now."