July 4, 2019 (MLN): The total deposits in scheduled banks took a leap of 10.7% on a year-on-year basis in June 2019, versus a 10% YoY rise in total advances for the same period.
The overall deposits during the month logged in at Rs.14.5 trillion while the advances stood at a sum of Rs.8 trillion.
Due to the latest hike of 150 bps in monetary policy rate on May 20, 2019 which brought it to 12.25%, the deposits have increased by 7.4% over the month while the advances only grew by 0.9% as banks and consumers displayed rational behavior and opted for saving rather than spending.
Meanwhile, the total investment by these banks came down from Rs.8.2 trillion last June to Rs.7.6 trillion thus marking a decline of 6.7% over the year.
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