Biz Updates: Bank loans up 11%, deposits up 10%; now Mahindra vehicles will also be costlier by up to three percent

New Delhi| Banks’ lending reached Rs 225.10 lakh crore for the fortnight ended March 7, up 11.1 per cent year-on-year. Deposits in banks increased by 10.2 per cent to Rs 181.28 lakh crore by this period. According to the latest RBI data, in value terms, bank loans have increased by Rs 1.38 lakh crore in the fortnight ending March 7, while deposits have registered an increase of Rs 2.25 lakh crore.  Banking sector experts say that due to cash crunch and pressure to raise deposits, banks are aggressively avoiding giving loans. Many big private sector banks are focusing on reducing their loan-deposit ratio. Due to this, the pace of credit growth has decreased in the last few months. However, steps like RBI’s liquidity coverage ratio framework and withdrawal of increased risk burden on NBFCs will come
The pace of distribution of bank loans may increase in months.

Mahindra vehicles will also become costlier by up to three percent
Mahindra & Mahindra will also increase the prices of SUVs and commercial vehicles by three percent from April. The company said, this decision has been taken due to rising production costs and increase in commodity prices. Many companies including Maruti have also announced to increase the prices.