Scheduled Banks collectively received Rs. 6,09,763 crore deposits in April-Aug

All Scheduled Banks (ASBs) collectively received about 2.75 times more deposit inflows in the first five months of the current financial year at Rs. 6,09,763 crore against Rs. 2,21,737 crore in the year ago period. This deposit jump comes despite drastic deposit rate cuts as savers preferred the safety of bank deposits vis-a-vis investments in other financial assets. Credit outstanding of ASBs’ fell by ?1,64,019 crore in the period against a decline of ?83,827 crore in the corresponding period last year. This was mainly due to the COVID-19 pandemic bringing the economy to almost a grinding halt, which in turn had deleterious effect on credit demand. Due to lack of credit appetite, banks invested a whopping Rs. 6,81,453 crore in central and state government securities against Rs. 1,99,188 crore in the year-ago period. According to the Reserve Bank of India’s “Scheduled Bank’s Statement of Position in India”, in the fortnight ended August 28, 2020, ASBs deposits jumped by Rs. 95,126 crore while their credit declined by Rs. 8,354 crore. However, their investments in central and state government securities rose by Rs. 40,803 crore during the fortnight.

News Source:- https://www.thehindubusinessline.com/money-and-banking/scheduled-banks-collectively-received-609763-crore-deposits-in-april-aug/article32603571.ece