Bank deposits rose Rs 39,378 crore in the fortnight ended November 19.
In the previous fortnight (November 05, 2010), deposits shrunk by Rs 65,027 crore as money flowed into public issues of Coal India and Power Grid Corporation.
The annual growth in deposits was 15.78 per cent with outstanding deposit base of Rs 48,49,605 crore, according to the Reserve Bank of India data.
Demand deposits rose Rs 44,837 crore to Rs 6,36,341 crore in the reporting fortnight.
Bank executives said despite increase in deposits, the strain on liquidity in the system remains. The liquidity deficit remains above RBI’s comfort level of one per cent of net demand and time deposits.
Reflecting the rebound in economic growth, bank credit rose 22.7 per cent in 12 months ended November 19. Banks disbursed Rs 27,270 crore in the fortnight, taking the total outstanding to Rs 35,580,60 crore, according to RBI data.