:::::SRI S.B. RODE, OUR BELOVED PRESIDENT, AICBOF AND OFFICER DIRECTOR ON THE BOARD OF CENTRAL BANK OF INDIA HAS BEEN COOPTED AS GENERAL SECRETARY, AICBOF IN E.C. MTG. HELD AT MUMBAI ON 24.02.2014:::::MR. S.C. GUPTA, GEN. SECRETARY OF OUR AHMEDABAD UNIT HAS BEEN COOPTED AS PRESIDENT, AICBOF::::::WE CONGRATULATE THEM AND WISH THAT THE OFFICERS' MOVEMENT IN CENTRAL BANK OF INDIA WILL BE TAKEN TO NEW HEIGHTS:::::LONG LIVE CBOA:::::LONG LIVE AICBOF::::::LONG LIVE AIBOC:::::

LOANS RISE 20.89%, DEPOSITS CATCH UP WITH AN 18% JUMP


Indicating an upswing in the economy, credit offtake from banks grew by Rs 28,263 crore during the fortnight ended June 3, 2011.

According to the latest Reserve Bank of India data, bank credit went up by 20.89% on a year-on-year basis to Rs 39.8 lakh crore at the end of June 3, 2011, from Rs 32.9 lakh crore in the same period of the previous year. RBI in its financial stability report has expressed concern over the slowdown in the economy, which may impact the loan books of banks.

Also, the central bank had pointed out that loan growth is disproportionately high in three sectors — retail, commercial real estate and infrastructure. For the current financial year, RBI has projected a 19% growth in credit and 17% rise in deposits.

Owing to attractive interest rates on retail and corporate deposits across maturities, deposits mobilised by banks during the fortnight went up by Rs 58,341 crore. On a year-on-year basis, deposits went up by 18.2% during the fortnight ended June 3.

Most banks have increased interest rates on deposits by up to 200 basis points in the last one-year. The increase in deposit rates on various maturities is also because of the 50 basis point increase in savings deposit rate, which was announced on May 3.

Time deposits, or deposits with a fixed maturity, went up by Rs 61,596 crore during the fortnight. At the same time, demand deposits or current and savings accounts of banks dropped marginally by Rs 3,255 crore.

As a result of increase in deposit mobilisation, bank investment in government securities that qualify for statutory liquidity ratio went up by Rs 29,294 crore during the fortnight.

0 comments