HOME   
   NEWS   
   BUSINESS   
   CRICKET   
   SPORTS   
   MOVIES   
   NET GUIDE   
   SHOPPING   
   BLOGS  
   ASTROLOGY  
   MATCHMAKER  


Search:



The Web

Rediff









Business
Portfolio Tracker
Business News
Specials
Columns
Market Report
Mutual Funds
Interviews
Tutorials
Message Board
Stock Talk



Home > Business > Reuters > Report

Indian bank deposits spurt at fiscal year end

April 19, 2003 16:09 IST

Indian banks saw a spurt in deposits around the end of the fiscal year to March because of year-end promotions and government spending, bankers said.

 

Data released by the Reserve Bank of India on Saturday showed deposits grew by 3.4 per cent in the two weeks to April 4 to Rs 13,236.62 billion. Deposits as on April 4 were 16.4 per cent higher than a year ago.


Bankers said deposits were boosted by government spending on salaries, pensions and infrastructure projects. Officials estimated the government would spend around 200 billion rupees between late March and April 7.


They also attributed the rise to traditional end-of-year efforts by banks to boost their balance sheets through promotions such as higher rates.


Credit was up 3.4 per cent at Rs 7,498.78 billion on April 4, from Rs 7,253.68 billion two weeks earlier, but bankers said there could have been a slowdown in subsequent weeks.


"Growth was strong in March, but we have seen some sluggishness in the past few weeks, which is usually the case between April and early May," said the credit manager at a state-run bank.


"Companies are making plans for the new year, and many also want to wait for the monetary policy."


The annual monetary policy to be announced on April 29 is widely expected to cut a key interest rate signal, the bank rate, which is now at 6.25 per cent. A cut could persuade banks to lower their deposit and lending rates.


"But the underlying trend has been fairly strong. Retail lending is going very well, and there has also been higher demand for funds from industry," the bank manager said.

Over the year, bank credit was up 24.2 per cent.



© Copyright 2003 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.





Article Tools

Email this Article

Printer-Friendly Format

Letter to the Editor



Related Stories


Betting on a bank rate cut

Sticky lending rates hamper policy

Investors lay bets on bank stock



People Who Read This Also Read


IUC to be implemented from May 1

Ketan Parekh granted bail

Truckers' strike continues







HOME   
   NEWS   
   BUSINESS   
   CRICKET   
   SPORTS   
   MOVIES   
   NET GUIDE   
   SHOPPING   
   BLOGS  
   ASTROLOGY  
   MATCHMAKER  
© 2003 rediff.com India Limited. All Rights Reserved.