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Commercial banks' deposits grew by 13.5 per cent on a year-on-year basis for the fortnight ended August 11, marking the highest growth in almost seven years, according to the latest data released by the Reserve Bank of India (RBI).
The previous high for deposit growth was 14.12 per cent on January 6, 2017, months after the demonetisation of the Rs 1,000 currency note and the then Rs 500 note, which was announced on November 8, 2016.
The growth in deposits in the current financial year picked up pace after the RBI announced the withdrawal of the Rs 2,000 note in May, although the note continues to be legal tender. This represents an increase from the 8.8 per cent deposit growth recorded a year ago.
As of July 31, 88 per cent of the Rs 2,000 note, valued at Rs 3.14 trillion, was returned. The last date for returning the note is September 30, 2023.
Meanwhile, credit offtake has continued to remain robust, with a 19.7 per cent growth year-on-year recorded until August 11, 2023, as compared to 15.3 per cent a year ago.
So far in the financial year, credit growth was 8.8 per cent and deposits grew by the same percentage, while last year deposits grew by 6.6 per cent.
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In the current financial year (FY24), bank credit in absolute terms grew by Rs 12.004 trillion. Banks have mobilised Rs 11.92 trillion in deposits in the financial year to date.
