{"id":4031,"date":"2020-07-03T22:31:51","date_gmt":"2020-07-03T22:31:51","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=4031"},"modified":"2020-07-03T22:31:51","modified_gmt":"2020-07-03T22:31:51","slug":"bank-deposits-growth-slides-for-first-time-in-three-months-customers-stay-away-from-taking-loans","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=4031","title":{"rendered":"Bank deposits growth slides for first time in three months; customers stay away from taking loans\u00a0\u00a0"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-2009466 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/rupee1.jpg\" alt=\"bank deposits, bank loans, repo rate\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-2009466 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/rupee1.jpg\" alt=\"bank deposits, bank loans, repo rate\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2009466 size-full\" src=\"https:\/\/images.financialexpress.com\/2020\/07\/rupee1.jpg\" alt=\"bank deposits, bank loans, repo rate\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/07\/rupee1.jpg 660w, https:\/\/images.financialexpress.com\/2020\/07\/rupee1-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/07\/rupee1-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/07\/rupee1-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/07\/rupee1-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/07\/rupee1-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/07\/rupee1-313x209.jpg 313w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/noscript><\/noscript><span class=\"article-caption\">After continuously rising from 7.9% in April to 11.3% in June, the growth of bank deposits slid to 11% in the fortnight ending-June 19.<\/span><\/figure>\n<\/div>\n<p><span style=\"font-weight: 400;\">The value of bank deposits in June 2020 fell for the first time in the last three months. After continuously rising from 7.9 per cent in April to 11.3 per cent in June, the growth of bank deposits slid to 11 per cent in the fortnight ending-June 19, according to the <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/tag\/rbi\/\" rel=\"noopener noreferrer\">RBI<\/a>\u2019s weekly supplement. After the nationwide lockdown was announced in the last week of March 2020, deposits in banks started to pick up due to the government\u2019s borrowings. Various rating agencies, including <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/care-ratings-ltd-stock-price\/\" rel=\"noopener noreferrer\">Care Ratings<\/a> and India Ratings and Research (Ind-Ra), had attributed a rise in overall borrowings of both the central and state governments, rather than increased savings, for the spike in deposits.<\/span><\/p>\n<p><b>Growth of bank loans halved\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">While the deposits grew only 1 percentage point faster than the year-ago level in the fortnight ending-June 19, the growth of bank loans nearly halved from 12 per cent to 6.2 per cent on-year in the same duration. Since the last year 2019, the Reserve Bank of India has been continuously cutting the repo rate to make loans cheaper for consumers. However, despite the efforts, subdued demand in the market has kept borrowers away from taking loans.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To quickly transmit the benefits of low-interest rates to the consumers, the RBI had also introduced an external-benchmarking for the loans, but it could not generate more borrowers for the banks. At present, banks have Rs 138.6 lakh crore as deposits while they gave lent Rs 102.4 lakh crore as loans.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even under the Prime Minister <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/tag\/narendra-modi\/\" rel=\"noopener noreferrer\">Narendra Modi<\/a>\u2019s \u2018Atma Nirbhar Bharat\u2019 package, the government announced bank guarantees and credit schemes worth lakhs of crores of rupees, including government-backed guaranteed loans worth Rs 3 lakh crore for MSMEs. Despite the lucrative schemes, the growth of bank credit has fallen from 7.2 in April to 6.2 in mid-June.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, with a high deposit growth compared to the credit off-take, banks\u2019 liability to pay interest has also increased, which is affecting the operating margins of scheduled commercial banks (SCBs). The banks have been cutting deposit rates to protect margins, as the banking system remained in the liquidity surplus of over Rs 3.8 lakh crore during the previous fortnight ending-June 5.\u00a0<\/span><\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\"https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\"https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<p class=\"telegram-text\"><img loading=\"lazy\" decoding=\"async\" class=\"telegrma_img\" src=\"https:\/\/images.financialexpress.com\/2020\/04\/telegram.png\" alt=\"\" width=\"24\" height=\"24\" style=\"margin: 0px 5px 4px 0px; float: left;\"\/>Financial Express is now on Telegram. <a href=\"https:\/\/t.me\/TheFinancialExpressOnline\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to join our channel<\/a> and stay updated with the latest Biz news and updates.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/bank-deposits-growth-slides-for-first-time-in-three-months-customers-stay-away-from-taking-loans\/2012469\/\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After continuously rising from 7.9% in April to 11.3% in June, the growth of bank deposits slid to 11% in the fortnight ending-June 19. The value of bank deposits in June 2020 fell for the first time in the last three months. After continuously rising from 7.9 per cent in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4032,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-4031","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/07\/rupee1.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/4031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4031"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/4031\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/4032"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}