Scheduled banks reported a growth in deposits in the reporting fortnight ended June 16, 2023, as they continue with high deposit rates even as they are getting good inflows due to deposit of ₹2,000 notes, which the RBI is currently withdrawing from the banking system.
Credit growth too jumped in the wake of robust demand from retail, NBFCs and infrastructure segments.
Deposits and credit of scheduled banks rose by ₹3,03,283 crore and ₹4,17,571 crore, respectively, in the reporting fortnight, per RBI data on Scheduled Banks’ Statement of Position in India.
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Following increase in deposits, banks’ investments in Government Securities (G-Secs) and State G-Secs too went up by ₹1,76,019 crore to fulfil the statutory liquidity ratio requirements.