There has been a reversal in the flow of Bank deposits, which grew by a robust ₹2,29,244 crore in the latest fortnight ended March 7, 2025. Deposits had seen de-growth by ₹43,339 crore in the previous fortnight.

Typically, the end of a month and the first week of a month see salaries being credited to employee accounts, and balances tend to swell. Further, the downturn in equity markets and slowdown in inflows into equity schemes of mutual funds during the reporting period also led to increase in account balances.

According to RBI’s latest scheduled banks’ statement of position in India, Bank credit growth accelerated to ₹1,42,972 crore in the reporting fortnight against ₹29,347 crore in the preceding fortnight.

The deposit growth exceeding credit growth during the reporting fortnight may help bring down the incremental credit-deposit ratio.

According to RBI’s latest monthly bulletin, Scheduled Commercial Banks’ incremental credit-deposit ratio increased from 80.7 per cent as at end-October 2024 to 88.2 per cent as on February 21, 2025.