Kolkata: Bank's deposits mobilisation slowed further with the latest print as on October 17 showing 9.5% yearly growth, 40 basis points lower as compared with 9.9% seen a fortnight back, Reserve Bank of India data showed.
Yearly credit growth remained at 11.5% zone for the period, a tad better than 11.4% print seen 14 days back.
This has further widened the gap between credit and deposits growth even as top banks expressed confidence that they have enough resources to meet the demand for credit for consumption as well as productive purposes.
Banks have been facing challenges in mobilisation of public money as lower interest rates make bank deposits unattractive. The challenge is more intense in the current and savings deposits (CASA) part as savers are shifting the floating funds to fixed deposits which yielded higher.
"This will remain a major challenge for every bank," a top banker executive said.
The official numbers also indicate this shift. Demand deposits rose 16.8% year-on-year at the end of October 17 while time deposits, which reflects the CASA, expanded at a slower 8.55% pace, central bank data showed.
Yearly credit growth remained at 11.5% zone for the period, a tad better than 11.4% print seen 14 days back.
This has further widened the gap between credit and deposits growth even as top banks expressed confidence that they have enough resources to meet the demand for credit for consumption as well as productive purposes.
Banks have been facing challenges in mobilisation of public money as lower interest rates make bank deposits unattractive. The challenge is more intense in the current and savings deposits (CASA) part as savers are shifting the floating funds to fixed deposits which yielded higher.
"This will remain a major challenge for every bank," a top banker executive said.
The official numbers also indicate this shift. Demand deposits rose 16.8% year-on-year at the end of October 17 while time deposits, which reflects the CASA, expanded at a slower 8.55% pace, central bank data showed.
