Bank deposits and advances declined in the fortnight ended June 14, 2024, after rising in the previous fortnight, per RBI data.
Deposits and advances of all scheduled banks fell by ₹1,86,078.38 crore and ₹71,039.91 crore, respectively, in the reporting fortnight, according to RBI’s Scheduled Banks’ Statement of Position in India.
Deposits and advances rose by ₹R2,71,456.44 crore and ₹1,81,385.66 crore, respectively, in the fortnight ending May 31, 2024.
“Credit growth is deepening, supported by healthier bank balance sheets....The growing gap between credit and deposit growth is reflected in a rising credit deposit (C-D) ratio, which has been on the ascent since September 2021 to peak at 78.8 per cent in December 2023 before moderating to 76.8 per cent at end-March 2024,” according to the Financial Stability Report.
As per the latest systemic risk survey (SRS) conducted by RBI in May 2024, half of the experts perceived that the increase in credit growth witnessed in the last two years is ‘somewhat sustainable’, and another 27 per cent assessed it to be ‘largely sustainable’. Some of the respondents, however, expressed concerns over consumer loan quality, cost of funds and asset quality.