Mumbai: Largest lender State Bank of India (SBI) on Friday said it has collected around Rs38,677 crore in deposits, while its branches exchanged Rs1,666 crore since Thursday after the government scrapped Rs500 and Rs1,000 notes on Tuesday.
“On Thursday, cash deposits were Rs21,150 crore while exchanges were Rs723 crore. Till 6pm today (Friday), cash deposited was Rs17,527 crore and exchanges stood at Rs943 crore,” SBI chairperson Arundhati Bhattacharya said.
In the beginning of the press conference, however, the bank had said it had received Rs53,000 crore since Thursday. But later clarified this with Rs38,670 crore. She said whatever is exchanged and deposited, it has been replenished in the system. “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.
She said all issues will be sorted in the next one or two days, but there will not be any cash shortage. The bank in just one day (Thursday) received Rs18,000 crore in its current account savings account (Casa). “In one day our savings deposit have gone up by Rs11,000 crore. Normally, deposits go up by about Rs8,000 crore per month. Our current account deposit has gone up by Rs7,000 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 marginal cost of funds based lending rate (MCLR). “This kind of a demonetization effort is very disinflationary. As it is disinflationary we believe lending rates will come down,” she said.
Asked whether demonetization 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.
Meanwhile, Canara Bank Ltd managing director and chief executive officer (CEO) Rakesh Sharma told PTI that the South-based public sector lender has received almost Rs9,500 crore of deposits while it exchanged Rs390 crore since the bank resumed operations on Thursday post demonetization of high value votes.