The banking sector in India is experiencing a positive start to the fiscal year 2024, especially on deposits side. The money supply growth has increased to 10.01 percent year on year, which is the best growth in 25 fortnights and the second-best in 37 fortnights. The deposit to money supply ratio has declined to 80.99 percent compared to the previous fortnight's 81.64 percent. The credit-deposit ratio has decreased slightly to 75.04 percent from 75.79 percent a fortnight ago.

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In terms of business momentum, there has been a significant increase in deposits on a fortnight basis, with an absolute value of Rs. 4,06,785 crore, which is the highest fortnight growth, on an incremental basis, at the beginning of a new fiscal ever.

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Week on week, demand deposits are up 1.49 percent, while time deposits are up 2.36 percent. The food credit has also increased by 5.3 percent, and non-food credit is up by 1.24 percent, resulting in an overall credit growth of 1.25 percent.

On a Year-on-Year basis, deposits have increased by 10.2 percent to reach Rs. 1,84,50,492 crore, while advances have increased by 15.71 percent to reach Rs. 1,38,45,677 crore. However, food credit has declined significantly by 47.4 percent, while non-food credit has increased by 15.92 percent.

Overall, the data suggests that the banking sector is performing well, with strong deposit growth and increased credit activity.

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