For the fortnight ended January 4, the growth in the deposit rate has logged close to double digit growth in almost 18 months. And this coincides with the weak flow into equities fund. As on the end, deposits with the bank remained at Rs 120.34 lakh crore, with a year on year growth of 9.91%.
In the previous year, the deposits stood at just 4.45%.
In the last one and a half year, banks' saw low deposit portfolio owing to decline in household savings as well as channelization of money to mutual funds.
Last time, the bank deposits grew at double digit growth rate was for the fortnight ended August 4, 2017.
The scenario of increased inflow to the bank is due to the lesser return from equity funds as well as a ban on commission for mutual fund agents by the SEBI.