Bank’s Credit & De­posit Num­bers See a ‘Mag­i­cal’ Jump

The Economic Times - - Markets: Beating Volatility -

Pratik Bhakta and Gay­a­tri Nayak

Mum­bai: Banks have lent 32% of the to­tal credit ex­tended by them in the whole year and have raised 40% of the whole year’s de­posits in just one fort­night, ac­cord­ing to data re­vealed by the Re­serve Bank of In­dia.

Ag­gre­gate de­posits stood at .₹ 97.2 lakh crore as of April 1, show­ing a jump of .₹ 3.4 lakh crore over the fort­night which com­prises a large part of the last fort­night of FY16. The amount of credit ex­tended was .₹ 73 lakh crore, show­ing a jump of .₹ 2.4 lakh crore dur­ing the fort­night. At a time when banks have shown his­toric lows in de­posit growth, a sud­den jump to­wards the end of the year reveals that banks are still win­dow dress­ing bal­ance sheets to shore up their busi­nesses. Such flows of­ten tend to move out of the banks’ books af­ter two-three fort­nights.

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