DOT Desk: One more a year passed with sluggish growth in deposits in the banking system, though different measures were taken by the government and the central bank to improve the situation, reports The Financial Express. Lower deposit growth is creating liquidity pressure on the money market gradually.
which may also put an adverse impact on the overall banking business in 2019 unless the situation improves shortly.
Most of the time in the outgoing year, the banks, especially private lenders, faced liquidity pressure mainly due to higher credit growth than that of deposits.
The deposit growth came down to 10.45 per cent in October from 10.60 per cent in December 2017 while the credit growth stood at 15.19 per cent compared with 18.08 per cent.
Besides, the overall credit growth in the banking system recorded a higher growth than that of deposit in the last three years.
The deposit growth had been on a fall, sliding from 13.13 per cent on December 31, 2016 to 10.60 per cent as on December 31 last calendar year. It was 13.66 per cent as on December 10, 2015.