State Bank of India, India’s largest bank, has collected around Rs 38,677 crore in deposits in two days after the government scrapped Rs 500 and Rs 1,000 notes on Tuesday. The total deposit collection by all the commercial banks would have crossed Rs 1 lakh crore mark in the last two days, said a banking source.
“On November 10, the total deposit of cash was Rs 22,150 crore. The total exchange of cash was Rs 723 crore. On November 11, 2016 till 6 pm, the total deposit of cash was Rs 17,527 crore while the total exchange of cash was Rs 943 crore,” SBI Chairman Arundhati Bhattacharya said.
“Hopefully, there wouldn’t be any cash crunch. The only problem is logistics where I have to ensure the cash reaches the required branches and ATMs,” she said, adding that all issues will be sorted in the next one or two days but there will not be any cash shortage.
Bankers estimate that the total deposit collection could be around Rs 1.5 lakh crore.
SBI received Rs 18,000 crore as CASA deposits on Thursday. “In one day our savings deposit have gone up by Rs 11,000 crore. Normally, deposit go up by about Rs 8,000 crore per month. Our current account deposit has gone up by 7,000 crore all in one day,” she said.
Bhattacharya said with the kind of deposits flowing into the bank, the cost of funds is going to ease which may help in reduction in deposit rates and MCLR. “This kind of a demonetisation effort is very disinflationary. As it is disinflationary we believe lending rates will come down,” she said.
Asked whether demonetisation will affect demand, she said only demand of luxury items will be impacted. “Overall there will be no fall in demand. Demand is actually created from the bottom … from the rural people it comes up to urban people and then upwards. So, that demand will be good,” she added.
Canara Bank has received almost Rs 9,500 crore of deposits while it exchanged Rs 390 crore since the bank resumed operations on Thursday.