Excluding the impact of HDFC merger, deposits have risen by Rs 16.2 lakh crore (+9%) in FYTD24 so far
Sonal Badhan,
Economist,
Bank of Baroda
Mumbai, December 30, 2023: RBI’s fortnightly data shows that, SCBs (including
HDFC merger impact) in FYTD24, i.e. between Mar’23 and Dec’23 (as of 15th Dec),
have registered an increase of Rs 17.5 lakh crore as incremental deposit (+9.7%),
with demand deposits noting Rs 1.4 lakh crore (+6.4%) increase, and time deposits
recording Rs 16.1 lakh crore (+10.1%) increase in this period. Excluding the impact
of HDFC merger, deposits have risen by Rs 16.2 lakh crore (+9%) in FYTD24 so far.
Last year in FYTD23 (Mar-Dec), deposits had risen by Rs 8.9 lakh crore (+5.4%), as
Rs 9.3 lakh crore (+6.5%) increase in time deposits was slightly offset by Rs 0.4 lakh
crore (-1.9%) decline in demand deposits.
SCBs’ credit growth
Lending by SCBs (including HDFC merger) has risen by 15.6% in FYTD24 so far
(between Mar’23 and 15 Dec 2023), implying an incremental credit growth of Rs
21.3 lakh crore. If we exclude the impact of HDFC merger, then incremental credit
growth was only Rs 15.5 lakh crore, noting 11.4% increase, which is still slightly
higher than 10.6% increase (+ Rs 12.6 lakh crore) registered in FYTD23 during the
same period.
During this period investments increased by Rs 4.4 lkh crore (Rs 5.45 lkh cr
including HDFC). Hence on the assets side there was an increase of close to Rs 20
lkh cr (excluding HDFC) while deposit increased by Rs 16.2 lakh crore. This explains
the persistent liquidity deficit in the system witnessed for over a month now.
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