According to CNBC-TV18 research, there was a smart jump in deposits growth in July to September quarter. This raises question whether some people perhaps knew about demonetisation and were already pushing in hoarded cash into the banking systems.
CNBC-TV18’s Latha Venkatesh reports deposit jump in Q2 seems to be curious coincidence.
State Bank of India's (SBI) deposit grew 4.3 percent in Q2 compared to 1-3 percent rise (quarter-on-quarter) in previous quarters. Similarly, Punjab National Bank’s (PNB) deposits jumped 3.8 percent in Q2 against growth of 1.6-0.8-0.2 percent growth in the deposits in the last few quarters.
Bank of India (BoI), which has seen contraction of deposits, made huge 1.5 percent growth. In last few quarters, its deposits grew 0.7 percent three quarters ago then a minus 3 then a minus 2.9.
Likewise, Union Bank after seeing a contraction of deposits in the previous quarter of 1.2 percent, made a growth of huge 6.7 percent in deposits.
Bank of Baroda’s (BoB) deposit growth was at 1 percent in Q2 versus contraction in previous three quarters.
This coincidence of deposits growing for all banks and the fact that India is staring at a demonetization of notes gives rise to a suspicion. Several questions are raised if some people knew about it before-hand and therefore could push in their hoarded money into deposits. It just raises doubt that there is a synchronous rise in deposit growth at a time when the economy was not doing well as the index of industrial production (IIP) shows as the results of several company show. There is no upturn in the economy then why this sudden growth in deposits, is it fishy?
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