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New Delhi: According to the latest data from the Reserve Bank of India (RBI), the public's deposits with banks grew by 10.6 per cent between November 2023 and November 2024. This increase in deposits comes alongside a rise in credit growth, marking a positive trend for the banking sector. Both term deposits and demand deposits showed double-digit growth during the same period.The rise in deposits reflects banks' continuous efforts to attract savings from the public. It also comes after a slowdown in credit expansion, particularly in retail loans, due to concerns from the RBI about the potential overheating of the economy.The RBI noted in its latest economic report that a better balance is emerging between deposit and credit growth. The incremental credit-deposit ratio, which had soared to very high levels earlier, has now come down to more manageable levels. The report highlighted that incremental deposit growth has outpaced credit growth in recent months.

As of November 1, 2024, the incremental credit-deposit ratio for scheduled commercial banks was 82.7 per cent, a drop from 95.8 per cent at the end of March 2024. This shift indicates that banks have been able to attract more deposits than credit in recent months, easing concerns about potential liquidity mismatches.The total public deposits with scheduled commercial banks stood at Rs 224.7 lakh crore at the end of November 2024, up from Rs 203.2 lakh crore a year ago. Of this, demand deposits accounted for Rs 26.3 lakh crore, reflecting a year-on-year increase of 10.3 per cent, while term deposits grew by 10.6 per cent to Rs 198.4 lakh crore. Banks' total credit also grew by 10.6 per cent, reaching Rs 179.6 lakh crore, up from Rs 162.4 lakh crore a year ago.

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