Banks have seen a sharp rise in their volume of business in the last seven days of September. While loans rose Rs 1,23,976 crore between September 23 and September 30, deposits went up by Rs 1,77,427 crore in the same period. This is more than 60% of the business in the entire first half.
The latest figures released by the Reserve Bank of India show that bank loans amounted to Rs 42,171,131 crore as on September 30, up Rs 1,72,269 crore, over the previous month's levels. Deposits amounted to Rs 42,17,131 crore, up Rs 1,98,594 crore. At current levels, the annual year-on-year loan growth works out to 21.4% compared with 20.2% in the year-ago period.
Banks often shore up business figures to show good results during a quarter end, and much of the growth in loans could be window dressing efforts by banks, which often go off their books in the beginning of a new quarter. At the current level, loan growth is still above the central bank's comfort level of 19% projected during its annual policy statement in May this year.
Banks have not seen much of a growth in corporate loans this year as project investments are yet to pick up. Moreover, many of the toprated corporates have raised funds from overseas markets when interest costs worked much lower.
According to the latest data on sectoral deployment in bank credit, it is the loans to other segments such as retail and loans to non-banking finance companies that have picked up between April and August this year.
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