look news india
Mumbai: Loan growth continues to be higher than deposit growth in the country's banking sector. Liquidity problems are also likely to arise in the banking sector where loan growth is higher than deposits. The deposit-to-lending ratio has also increased to close to 80 percent.
Bank loans grew by 14 per cent and deposits by 11.30 per cent in the fortnight ended July 12. According to Reserve Bank of India data, during the fortnight, depositors withdrew Rs 2.10 lakh crore from savings and current accounts and deposited Rs 1 lakh crore in fixed deposits.
12 Outstanding deposits stood at Rs 211.70 lakh crore at the end of July, while borrowings stood at Rs 168.10 lakh crore. The deposit-to-loan ratio has reached close to 80 per cent, the highest in the current financial year. With the increase in economic activities in the country, loan demand is also increasing continuously.
