look news india
Mumbai: In recent years, deposit growth in the country's banks has been slower than loan growth, a statistical calculation by the State Bank of India (SBI) said in a report.
Credit growth is higher than deposit growth, but a deeper analysis of the available data shows a different picture, in FY23, the banking sector, particularly each of the scheduled commercial banks, had the highest deposit and credit growth since 1951-52.
Deposits grew by Rs 15.70 lakh crore while lending grew by Rs 17.80 lakh crore, taking the deposit to loan ratio to 113 per cent. This trend continued in FY24 and deposits grew by Rs 24.30 lakh crore while loans grew by Rs 27.50 lakh crore, however, if we look from FY22 onwards, deposit growth has been more than phased loan growth. The way SBI has reported
Since FY 2022, deposits have grown to Rs 61 trillion while the credit figure has stood at Rs 59 trillion.
Looking at historical data, it seems that there has been a contradiction in credit and deposit growth for the past two-four years. The current cycle of higher loan growth than deposit growth is likely to end between June and October next year. With this contradiction ending, loan deposit growth will start seeing higher growth.
