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