Demonetisation: Monthly bank deposits in Sept at Rs 5.98 lakh cr, highest in 2 years

The second biggest mobilisation (in the two-year period) was in July 2015 when the aggregate deposits with SCBs grew Rs 1.99 lakh crore over June 2015.

Written by Sandeep Singh | New Delhi | Published:November 14, 2016 1:13 am
demonetisation_pti-m A look at last two years monthly aggregate deposit data for banks, available with the RBI, shows that September’s figure in absolute terms is the highest monthly mobilisation by far during the period.

In one of the highest monthly bank deposit mobilisation over the last two years, September 2016 saw an aggregate addition of Rs 5.98 lakh crore over that in August 2016 to hit an all-time high of Rs 1,02,08,290 crore.

A look at last two years monthly aggregate deposit data for banks, available with the RBI, shows that September’s figure in absolute terms is the highest monthly mobilisation by far during the period. The second biggest mobilisation (in the two-year period) was in July 2015 when the aggregate deposits with SCBs grew Rs 1.99 lakh crore over June 2015.

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Even on a year-on- year basis, the growth in deposits in September is the highest in at least two years and it grew by 13.5 per cent (Rs 12.11 lakh crore) over that in September 2015. The growth in the same month last year was 9.97 per cent (Rs 815,820 crore). The Y-o-Y growth in deposits in July 2015 comes closest to the growth in September as it was 12.68 per cent (Rs 10.12 lakh crore) Even in August 2015, the y-o-y growth was 11.4 per cent.

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It is however, important to note that the sharp growth of 13.5 per cent in September comes on the back of subdued growth of between 7 and 9.5 per cent between April and August 2016.

Though questions have been raised on the sudden spike in deposits with banks in September 2016, ahead of the government announcement to withdraw old Rs 500 and Rs 1,000 notes out of circulation, the finance minister Arun Jaitley said that the spike in deposits was primarily on account of payout of arrears of 7th Pay Commission.

While some economists say that the quantum of deposit in September is above normal in absolute terms, some say that there were a few factors that could have led to the same. “The rise in deposits in September is partly seasonal and in Y-o-Y terms the numbers do not look that stark. Also, around September, cash gets built-up in the system ahead of the festive season and that leads to rise in deposits. Government’s fertiliser subsidy payout and money related to spectrum auction could have also lifted the deposits,” said Abheek Barua, chief economist at HDFC Bank.

On the other hand, DK Pant, chief economist India Ratings said that even if one takes into account the payout of 7th pay commission and amount linked to disclosures under IDS, “the amount is baffling.”

Similarly, DK Joshi, chief economist at Crisil said that while the amount of deposit in September is certainly more than normal, there have been a few reasons such as 7th pay commission payout and it could have partly resulted that.

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  1. A
    Abhinav Kaul
    Nov 29, 2016 at 8:34 am
    Can someone please provide me the URL from RBI website. I could not locate the same as I was navigating it through the aforesaid website.
    Reply
    1. A
      Abhilash Nair
      Nov 16, 2016 at 3:57 pm
      congress must have deposited.. nobody else have this much cash...:-)lt;br/gt;lt;br/gt;1. 2G Spectrum Scam – 2008 – 1,76,000 Crore 2. Wakf Board Land Scam – 2012 – 1.50,000 Crore 3monwealth Games Scam – 2010 – 70,000 Crore 4. Satyam Scam – 2009 – 14,000 Crore 5. Bofors Scam – 1980s and 90s – 100 to 200 Crore 6. The Hawala Scandal – 1990-91 – 100 Crore
      Reply
      1. A
        Annnxxx
        Nov 14, 2016 at 3:39 pm
        Always knew Modi is a scamster. And yet he will fool the public about fighting corruption
        Reply
        1. A
          A
          Nov 14, 2016 at 6:34 am
          Seems some have got huge payments in September, more than anything published!
          Reply
          1. B
            Binni Shivan
            Nov 18, 2016 at 6:11 am
            The report is not correct. The no looks suious. It says the total deposit in scheduled commercial banks(SCM) is 1,02,08,290. Welll the total indian GDP is only 2073 billion USDlt;br/gt;lt;br/gt;lt;br/gt;lt;br/gt;If you convert this into indian rupeeslt;br/gt;lt;br/gt;2073*67 billion RSlt;br/gt;lt;br/gt;One billion is 100 crorelt;br/gt;lt;br/gt;So GDP of india is lt;br/gt;lt;br/gt;2073*67*100=138,89,100 crorelt;br/gt;lt;br/gt;No sane person will believe that 73% indian GDP is in the SCM as depsoists(Please understand this doesn't ever cover other savings cheems like PF, LIC etc).lt;br/gt;lt;br/gt;To me it appears that the report has missed a decimal point. lt;br/gt;1,02,08,29.0 will look more correct(This is 7.3% of indian GDP)
            Reply
            1. C
              chandu
              Nov 21, 2016 at 6:00 am
              The numbers are true.......
              Reply
              1. D
                Divakar
                Nov 16, 2016 at 10:58 pm
                Even if we agree that the black money was deposited, doesn't it mean that it is into the system now?? The exception is, whoever deposited after Nov 8th, he is subjected to punishment. If similar step is taken for that spike deposits also, there won't be any difference.
                Reply
                1. J
                  jew
                  Nov 14, 2016 at 9:09 am
                  The arrear payment was of 34,600 crores vs deposit growth of 5,98,000 crores.lt;br/gt;lt;br/gt;This certainly looks suious.
                  Reply
                  1. H
                    hari
                    Nov 14, 2016 at 9:50 am
                    in sept 10208290 crores not 598000crore see the figured
                    Reply
                    1. R
                      Ramakrishnan Iyer
                      Nov 14, 2016 at 6:05 am
                      Jaitly is completely wrong in this. There is something more to it. By coming to know the movement of the government, many officers must have got some doubts and gave hints to their friends and relatives. Also it is possible, the ruling party got the hint and being a party of traders (most black money is with them) got them news.
                      Reply
                      1. R
                        Regina
                        Nov 14, 2016 at 10:40 am
                        Good Mansoon may have contributed to increase in income and deposits.
                        Reply
                        1. K
                          Kalikutty
                          Nov 14, 2016 at 3:11 am
                          Jaitly says it is 7th pay commission. If so it must be some commision
                          Reply
                          1. K
                            kosaraju vittal
                            Nov 25, 2016 at 4:14 pm
                            No need of correcting the figures. They are correct with or without a zero for all months. The fact is that there has been an increase in the rate of deposits throughout 2015 and 2016. Economists can wish that away as lack of investment sentiment . But the talk of demonetisation has been going on for more than 2 yrs and RBI has been at it for a long time. Thus the big fish has pla safe although and it is common man and honest tax payer who is made to dance. Unless corruption in IT dept is not curbed nothing will come out of the scheme. It will be a failed attempt best useful for erase arch on economic policy.
                            Reply
                            1. V
                              vivek
                              Nov 14, 2016 at 1:37 am
                              omg what lies.. total deposits in indian banking system is arnd 70 lakh crore and indian express states that it is 10 lakh crore in sep and about 9 lakh crore every mth. can some one help me understand this.
                              Reply
                              1. M
                                Murthy Suppusamy
                                Nov 15, 2016 at 8:01 pm
                                7th pay commission payout was over Rs 20,000 Crores in August to Central staff. Those arrears went to banks as deposits. Please stop this false Rumour.
                                Reply
                                1. M
                                  Murthy Suppusamy
                                  Nov 15, 2016 at 8:02 pm
                                  In a growing economy, the anomaly of Rs 6000 crores higher than previous month is normal and not out of turn. So, the Congi party is creating a mess on this.
                                  Reply
                                  1. M
                                    murty
                                    Nov 14, 2016 at 8:26 pm
                                    Useless analysis.It looks the writer is paid by UPA. the trend of months are observed this much variation is possible various reasons..lt;br/gt;All black money holding parties will naturally cry because they will suffer for funds in the next elections .Because they are experts in distribution of money before elections.lt;br/gt;Hence they never tried for elimination of black money.,lt;br/gt;No wonder they may try to topple modi by hook or crook.
                                    Reply
                                    1. R
                                      Ramyagnesh
                                      Nov 14, 2016 at 9:37 am
                                      It shall not be correct to come to some conclusion with only one info on monthwise Bank Deposit amount without correlating with the withdrawals and other details unless it is mentioned that it is net deposits. It is not mentioned whether these are cash deposits which is not possible. Companies may park surplus/borrowed funds also in short term deposits and withdraw at the time of actual payment. This info may be useful for half baked politicians like Rahul hi, Ketriwal, Mamata, Mayawati and the great Communists.
                                      Reply
                                      1. S
                                        sameer
                                        Nov 14, 2016 at 12:53 pm
                                        We need party like BJP in position "always" :-). They make for a great opposition and shout the loudest for everyone to take notice of any mischief done by government. Sadly they don't provide for a smooth and comfortable government for people other than on their sponsors.
                                        Reply
                                        1. S
                                          Suneesh
                                          Nov 21, 2016 at 5:17 pm
                                          Yes, the amounts are in Millions(10 lakh) in RBI website, not crore. So 7.3% is the number.
                                          Reply
                                          1. S
                                            SK
                                            Nov 14, 2016 at 10:38 am
                                            Certainly an intentionally written mischievous article. The deposits stand at 102 lakh crores vs. 96 Lakh crores the previous month. Jan'16 deposits were at 11.58%. Did Kejriwal write this article? Facts detorted in the guise of statistics.
                                            Reply
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