Bank deposit growth faster than loans: RBI
MUMBAI, JULY 05, 2007 -- Bank deposits in India, excluding interbank deposits, grew by 0.88 per cent to Rs 27.51 trillion in the two weeks ended June 22, provisional figures from the Reserve Bank showed.
Bank loans, excluding interbank loans, rose 0.15 per cent to Rs 19.73 trillion in the same period. Deposits have been growing increasingly faster than loans as a result of the Reserve Bank of India's (RBI) tight monetary policy.
The RBI has raised its key lending rate five times since last June and has increased banks' cash reserve requirements three times since December to check the scorching pace of bank loan growth.
The RBI has scheduled a meeting on July 31. RBI data shows the annual growth in bank loans credit has moderated to 25.6 per cent in mid-June from rates around 30 per cent earlier in the year. Final figures are due on Friday.
Last Updated: Thu, 05 Jul 2007 13:29:00
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