Bank deposits grow at 11.3% but credit growth moderates, shows data

With banks turning risk-averse, credit growth in the Indian banking sector has remained low at 6.2 per cent for the fortnight ended June 5, but deposits have increased by 11.3 per cent in the same period. This has resulted in many banks cutting deposit rates to protect their margins. 
 

Banks have also lowered their lending rates following the cut in the benchmark rates by the Reserve Bank of India (RBI). The banking system was in surplus liquidity during the fortnight ended June 5, and is expected to remain in a surplus position with the growth in bank deposits expected to