Uncertain economic conditions pull down deposits and advances
By Neelima Shankar
May 31, 2012
Print    Email    RSS   

Current fiscal year hasn't been very happy for the banking sector. The Reserve Bank of India (RBI) has reported that the advances and deposits for the period have reduced. Slow economic growth and declining demand for loans are the prime reasons.

The fiscal beginning April saw advances to shrink from Rs. 46, 50,000 crore to Rs. 45,490,000 crore; the deposits for the same period also decreased from Rs. 61, 16,750 crore to Rs. 60, 80,000 crore.

There hasn't been much difference in demands for the working capital loans by companies; but there is a decline in demand for financing projects as the companies are being cautious and are uncertain about economy.

The deposits and advances however grew year-on-year basis at 13.8% and 17.4% respectively. The lack of demand for loans gave banks an opportunity to invest in government securities, with banks taking their investments in sovereign bonds to Rs. 18,25,000 crore.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Financial ratios as an aid to financial...
Carnival of Indian Personal Finance Blogs...
Planning to invest in a bank FD? Think again
Haven’t filed a return of your income?...
Credit profile and its effect on loan...

NANGAL: CaℒL Giℛℒ In Una 09855660911 Escoℛt...
Chandigarh@CaℒL Giℛℒ In Rajpura +O9855660911...
If I invest 100000 rupees deposit for 2 year , how...

Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive