Branch² Intelligence
Bank Deposits Jump Rs 7 Lakh Crore In A Fortnight, Third Highest In 29 Years — Here's Why
Key takeaway
Bank deposits surged ₹7 lakh crore in a fortnight, the third-highest rise in 29 years, driven by $7 billion in FII inflows after government measures to boost foreign investment and stabilize the rupee.
- Step 1Government measures attract $7 billion in FII inflows, boosting foreign exchange reserves and stabilizing the rupee
- Step 2FII inflows land as bank deposits, causing a ₹7 lakh crore surge in a fortnight, the third-highest in 29 years
- Step 3Banks' liquidity improves, enabling them to lower lending rates and ease credit availability for Indian SMEs
- Step 4Indian SMEs with floating-rate loans see lower interest costs, improving cash flow and margins, but the deposit surge may also indicate a shift from consumption to savings, softening demand for discretionary SME products
Source: IN:NDTV Profit
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