CASA drives 9.4% YoY moderation in deposit growth even as FDs stay buoyant

Credit growth sustains momentum at 17.4%, but it has come off the peak

Deposit mobilisation in the banking system moderated slightly taking the growth rate to 9.4 per cent year-on-year (YoY) for the fortnight ended December 16, from 9.9 per cent the previous fortnight, latest data by Reserve Bank of India (RBI) showed.

According to RBI data, as of December 16 fortnight, aggregate deposits in the banking system stood at Rs 173.53 trillion compared to Rs 175.24 trillion in the previous fortnight.

“Current account and savings account (CASA) growth moderated whereas term deposits attracted accretions in response to rising interest rates,” RBI said in its Financial Stability Report (FSR) report earlier this week.