MUMBAI: With banks cutting interest rates
on deposits, funds mobilised by them dropped during the fortnight ended
21 September, the latest Reserve Bank of India data shows.
Deposits mobilised by banks dropped Rs 30,152 crore while loans went up Rs 16,795 crore in the period under review. On a year-on-year basis, deposit grew 13.66% compared to RBI's projection of 16%. While annual credit grew 16.4%, compared to the central bank's projection of 17% for the year.At the system level, while credit growth has been more or less in line with the projections of the central bank, deposit growth has lagged this year.
As a result of lower deposit mobilisation, banks' investment in government securities or instruments that form part of the statutory lending ratio fell Rs 32,426 crore.The country's largest bank State Bank of IndiaBSE 1.47 % has slashed deposit rates by 50 to 75 basis points. One bps is 0.01%. As per the new base rate system, this will give the bank room to cut lending rate as well. Private banks like ICICI, Axis BankBSE 2.46 % and HDFC BankBSE 1.64 % have cut deposit rates by 50-75 points.
Deposits mobilised by banks dropped Rs 30,152 crore while loans went up Rs 16,795 crore in the period under review. On a year-on-year basis, deposit grew 13.66% compared to RBI's projection of 16%. While annual credit grew 16.4%, compared to the central bank's projection of 17% for the year.At the system level, while credit growth has been more or less in line with the projections of the central bank, deposit growth has lagged this year.
As a result of lower deposit mobilisation, banks' investment in government securities or instruments that form part of the statutory lending ratio fell Rs 32,426 crore.The country's largest bank State Bank of IndiaBSE 1.47 % has slashed deposit rates by 50 to 75 basis points. One bps is 0.01%. As per the new base rate system, this will give the bank room to cut lending rate as well. Private banks like ICICI, Axis BankBSE 2.46 % and HDFC BankBSE 1.64 % have cut deposit rates by 50-75 points.
