According to the Reserve Bank, banks distribute loans of Rs 80 for every Rs 100 deposited.
The lack of liquidity in the country’s banks has further increased. During the second half of December, the liquidity shortfall in the country’s banking system reached Rs 1.5 lakh crore. To cope, banks are increasing deposits.
As a result, interest rates on deposits reached 7.50%. Some banks have extended the deadline for new schemes with higher interest rates and some have launched new FD schemes.
Banks like IDBI give higher interest, up to 0.65%, to the elderly and very elderly. Due to this, interest rates for super seniors have increased up to 8.05%.
In the first week of December, banks’ cash surplus was Rs 1 lakh crore. Over the next fortnight, liquidity declined due to withdrawals to pay taxes and RBI intervention in the foreign exchange market.
Siddharth Sanyal, chief economist at Bandhan Bank, said that now the pressure to increase deposits by increasing rates has increased.
Banks had appealed to the Reserve Bank to take measures to increase liquidity by resorting to dollar-rupee swaps to increase banks’ liquidity. After this, RBI used dollar-rupee swap last week. RBI used swaps worth around $3 billion.
Due to this, banks received liquidity of around Rs 25,970 crore. Swap maturities are 3.6 and 12 months. But that is not enough. He needs around Rs 1.25 lakh more in cash.
Banks hand out loans of ₹80 for every ₹100 deposited. According to Reserve Bank data, until December 27, 2024, bank deposits increased at the rate of 9.8%. During the same period, credit growth, that is, the pace of loan distribution, was 11.16% per year.
Total deposits reached Rs 220.6 lakh crore and loans reached Rs 177.43 lakh crore. This means that banks distribute loans of Rs 80 for every Rs 100 deposited.
This credit-to-deposit ratio was 79% in 2023, which is expected to be 73%.
Stallion India Fluorochemicals IPO to begin on January 16: Investors can bid until January 20, minimum investment ₹14,850
share
No change in gasoline and diesel prices today: Wholesale inflation rose to 2.37% in December, Stallion India IPO to begin on January 16
share
Gold became more expensive by ₹400, reaching ₹78,018 per 10 grams: Silver price rose by ₹468, reaching ₹90,268 per kg
share
Wholesale inflation increased to 2.37% in December: Prices of potatoes, onions, eggs, meat, fish and fruit have increased; Was at 1.89% in November1:01
share