Kolkata's banking sector experienced a significant ₹5.19 lakh crore withdrawal of deposits on a net basis during the fortnight ending October 15, according to Reserve Bank of India data reported by The Economic Times. This substantial outflow indicates a notable shift in customer behavior and banking patterns during this period, highlighting the challenges facing the banking sector in managing customer deposits.
The banking sector also witnessed a ₹2.52 lakh crore contraction in credit outstanding during the same fortnight period, as reported by The Economic Times. This credit shrinkage directly impacted the overall banking system's lending capacity and growth trajectory during this reporting period, reflecting the sector's struggle to maintain lending momentum amid changing market conditions.
The combined impact of deposit outflows and credit contraction resulted in a slowdown in credit growth to 18.2% from the previous fortnight's 19.4%, according to The Economic Times report. Similarly, deposit growth declined to 16.7% from the earlier 17.8% in the preceding fortnight, indicating broader banking sector challenges during this period and suggesting that both deposit mobilization and lending activities are under pressure.
As of the end of the reporting fortnight, outstanding deposits reached ₹278.76 lakh crore while outstanding credit stood at ₹227.43 lakh crore, as reported by The Economic Times. The credit-deposit ratio was recorded at 81.59%, providing insight into the current banking sector composition and lending dynamics during this period. These figures demonstrate the sector's current balance sheet position amid the challenging operating environment.
