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Bank Credit-Deposit Growth: In the coming days, banks will have to pay more interest rate to customers on deposits. Actually, the speed at which banks are disbursing loans, banks are not getting deposits. In such a situation, banks will try to woo customers by offering more interest on FD-RD (Fixed Deposit- Recurring Deposit).
The Reserve Bank of India on Monday released quarterly data regarding the deposit-credit of banks. According to which the demand for loan has increased at the rate of 16.8 percent during the quarter from October to December 2022. Which is less than 17.2 percent in the July to September quarter. But it is much more than the deposits coming in the bank. Deposits in banks grew at the rate of 10.3 per cent between the October to December quarter. According to RBI, the deposit growth rate has increased due to an increase of 13.2 per cent in term deposits. While the current and savings growth rate has increased at the rate of only 4.6 percent.
These figures are telling that as much as there is demand for loans, deposits are not coming to the banks. If this continues like this, there may be a shortage of cash with the banks to give loans. In such a situation, banks may have to increase the interest rates on deposits. Fixed deposits and recurring deposits may have to pay more interest so that people can be attracted to keep deposits in banks.
RBI has increased the repo rate for six consecutive times in the last 9 months by 2.50 percent to 6.50 percent. After this the banks made loans costlier but did not increase the interest rates on deposits in that proportion. But in view of the increasing demand for loans, banks may have to make deposits attractive to raise cash.
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