Banks are seeing a shift in deposits from savings account to fixed deposits even as credit growth is gathering steam.
In the reporting fortnight ended September 9, 2022, all scheduled banks reported overall deposit accretion of ₹62,196.47 crore, probably due to depositors moving their deposits from savings account to fixed deposits (FDs) and the creation of new FDs.
Saving bank deposits of banks declined ₹54,021.77 crore in the fortnight while FDs were up ₹1,16,218.25 crore, as per latest RBI data.
This comes at a time when FDs are fetching relatively higher returns as banks are upping interest rates in the backdrop of the gradual drying up of systemic liquidity.
Incremental credit growth continued to outpace deposit growth. Banks reported credit growth of ₹95,751.7 crore in the reporting fortnight against deposit growth of ₹62,196.47 crore.
September 24, 2022