As at 22 jan 2016, deposits of banks grew by 11.1 % yoy, whereas credit growth was 11.4%.
Both growth rates are well below 16% and 20% p.a. achieved in last 10 years. since 2014 it has drastically fallen. This has created liquidity issues in banking. low growth in deposits may be due to steep fall of 2% in FDR rates by banks. As economic growth is very low, as such pick up in credit is also low.
you may suggest steps to boost both.
Both growth rates are well below 16% and 20% p.a. achieved in last 10 years. since 2014 it has drastically fallen. This has created liquidity issues in banking. low growth in deposits may be due to steep fall of 2% in FDR rates by banks. As economic growth is very low, as such pick up in credit is also low.
you may suggest steps to boost both.
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