In the last fortnight of the fiscal 2005-06, banking system's deposit mobilisation grew by Rs 83,894 crore "" over one-fourth of the entire quantum of deposit liability mopped during the year. The increase in aggregate deposits in the last fortnight of the previous year was almost half of it, Rs 46,680 crore. | |
| According to figures released by the Reserve Bank of India, aggregate deposits with all scheduled commercial banks grew from Rs 20,03,775 crore on March 17 to Rs 20,87,669 crore on March 31. The growth was in both demand (short term) as well as time (long term) deposits. |
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| For the fortnight ended March 31, 2006, bank credit was up by Rs 53,883 crore against fortnightly growth of Rs 49,610 crore on March 31, 2005. For the entire year, growth in bank credit was to the tune of over Rs 3,55,000 crore. |
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| Banks' investment portfolio during the year actually shrunk by about Rs 13,000 crore. According to senior bankers, some of the banks had aggressively mopped up funds at a higher cost to meet the credit demand for the financial year-end. |
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| However, the additional factor that had contributed to the increase in the deposits is the consistent intervention of the RBI in the foreign exchange market to mop up dollars for oil payments and to prevent appreciation of the spot rupee. |
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| While the RBI has mopped up foreign exchange of around Rs 80,000 crore during the entire financial year, a major part of the accretion to the tune of Rs 25,000-30,000 crore has been during the last one month. |
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| The funds released by RBI in course of its dollar purchases ultimately get parked with the banking system. The sharp rise in deposits also explains the excess funds absorbed by the RBI in its daily liquidity adjustment facilities over the last fortnight through the reverse repo route. |
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