In a notable shift, Indian banks have successfully attracted deposits exceeding loan disbursements during the last fortnight of May, marking a reversal from the trend observed over the past two years. Deposits surged to Rs 2.7 trillion, surpassing credit off-take of Rs 1.7 trillion. This follows banks’ intensified efforts to attract deposits amidst competitive pricing and higher returns offered by stocks and mutual funds. Credit growth, however, remains robust with a 19.8% year-on-year increase, reaching Rs 167.8 trillion, while deposits grew by 12.8% to Rs 210.9 trillion over the same period.
Indian Banks Witness Surplus Deposits Surpassing Loans for the First Time in Over Two Years
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