Rs 1.20 lakh crore deposited in SBI

Mumbai, November 25
SBI Chairperson Arundhati Bhattacharya on Thursday claimed that nearly Rs 1.20 lakh crore has been deposited during the last 15 days after demonetisation of high denomination notes.
Replying to a specific question on the impact of demonetisation on the bank’s performance, Bhattacharya told reporters tonight at the city airport that about Rs 1.20 lakh crore has been deposited by the public during the 15 days.
Asked about the performance during this quarter, in view of this sudden surge of deposits, she said the performance will be better and the bank would be doing good business, since one-third of the total amount deposited after demonetisation was in SBI. About the problem of availability of Rs 100 and Rs 500 notes, Bhattacharya said as far as Rs 100 notes were concerned, there were a lot of currencies available. However, people were not not keen on spending and bothered about exchange and depositing high value currency, she claimed.
“Yes. Rs 500, lack of it has been an issue. However with supply being strengthened by RBI, the problem will be solved in a few days.We are going to put the 500 notes in all our recalibrated ATMs so that the people can utilise it,” she said. Asked about reports of loan waiver to Vijay Mallya, Bhattacharya said time and again the bank has come out with clarification. Technical and physical write-off is not waiver and the bank was doubling efforts to recover all dues and not reducing the efforts.”Those who are alleging, is doing with an intention of creating mischief,” she said. To a query on deposits made in banks followingdemonetisation, the SBI chairperson said 15 per cent may remain in the bank and the balance circulated in the economy. “The amount that is coming into the bank (from public) will not remain with it. We expect around 10 to 15 per cent of it to remain in the bank, but the rest will have to go back because they were in the economy,” Bhattacharya said. Asked if there would be a decrease in lending rates from banks, she said banks follow a time table on certain things.
“So we have to see what is the cost of deposits on the 24th of each month and thereafter, the cost of lending will be determined on 1st of next month. This is what we are doing,” she said. On recalibration of ATMs to dispense new currencies, she said 60 per cent of the ATMs were recalibrated and the remaining would be completed in five days. Asked if demonetisation was another way of recapitalising banks, she said, “How it will recapitalise banks? Because, frankly speaking, demonetisation has nothing to do with recapitalisation”.
“The fact of the matter is it is not even known whether the Government will directly benefit from demonetisation as is being made out by some people in the media.But definitely what will happen is revenue income of the Government will go up.”

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