The Reserve Bank of India has sanctioned the Scheme of Amalgamation of the entire undertaking of DBS Bank Ltd., India with DBS Bank India Limited which has been granted licence by the Reserve Bank to carry on the business of banking in India through Wholly Owned Subsidiary (WOS) Mode under section 22(1) of the Banking Regulation Act, 1949. The Scheme has been sanctioned in exercise of the powers contained in sub-section (4) of Section 44A of the Banking Regulation Act, 1949.

The Scheme will come into force with effect from March 01, 2019. All the branches of DBS Bank Ltd. in India will function as branches of DBS Bank India Limited with effect from March 01, 2019.

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/2064


The Reserve Bank of India today placed on its website a Working Paper titled “Inflation Expectations of Households: Do They Influence Wage-Price Dynamics in India?” under the Reserve Bank of India Working Paper Series*. The Paper is authored by Sitikantha Pattanaik, Silu Muduli, and Soumyajit Ray.

This paper examines the usefulness of survey based information on inflation expectations of households in the analysis of inflation dynamics in India. Hybrid versions of New Keynesian Phillips Curve (NKPC) are used to study whether inflation expectations of households work as proxy of forward looking expectations to predict inflation. Both three months ahead and one year ahead inflation expectations emerge statistically significant in explaining and predicting inflation, but they effectively work as substitutes of backward looking expectations given that household expectations are found to be adaptive. When transmission of inflation expectations to inflation is assessed through wage dynamics, no robust evidence is found on expectations induced wage pressures influencing CPI inflation. Short-term food and fuel shocks explain significant part of variations in inflation expectations of households. Notwithstanding limited evidence on spillover of inflation expectations of households to wages and prices, the high degree of observed inflation persistence and significant sensitivity of inflation expectations to food and fuel shocks warrant sustained emphasis of monetary policy on well anchored inflation expectations.

* The Reserve Bank of India introduced the RBI Working Papers series in March 2011. These papers present research in progress of the staff members of the Reserve Bank and are disseminated to elicit comments and further debate. The views expressed in these papers are those of authors and not of the Reserve Bank of India. Comments and observations may kindly be forwarded to authors. Citation and use of such papers should take into account its provisional character.

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/2065


Today, the Reserve Bank released its web publication entitled Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks (SCBs), December 2018 on its Database on Indian Economy (DBIE) portal (web-link:!3). Data on deposits, disaggregated by type and total credit are classified by states, districts, centres, population groups and bank groups, are collected from all SCBs, including regional rural banks (RRBs) and small finance banks (SFBs), under the basic statistical return (BSR) – 7 system.


  • Bank credit growth (y-on-y) remained in double digits across all population groups (rural/ semi-urban / urban / metropolitan).

  • Private sector bank group recorded over 20 per cent credit growth (y-on-y) for the fifth successive quarter; whereas it was recorded at 8.4 per cent for public sector banks.

  • Aggregate deposits growth (y-on-y) continued to accelerate; it increased for all population groups and all bank groups (except for RRBs) in the latest quarter.

  • Private sector banks continued to lead deposit mobilisation; deposit growth for public sector banks remained low, though it has been picking up gradually.

  • Metropolitan bank branches contribute more than half of aggregate deposits (51.3 per cent) and have the largest share of total bank credit (63.9 per cent).

  • The share of current account and savings account (CASA) deposits of SCBs remained stable at 41.3 per cent.

  • Seven states (viz., Maharashtra, National Capital Territory of Delhi, Tamil Nadu, Karnataka, Uttar Pradesh, Gujarat and West Bengal) accounted for about two-thirds of deposits as well as credit.

  • The banking system’s all-India credit-deposit (C-D) ratio improved to 77.6 per cent in December 2018 (76.4 per cent a quarter ago); metropolitan branches had the highest C-D ratio of 96.6 per cent.

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/2062


Data on sectoral deployment of bank credit collected from select 41 scheduled commercial banks, accounting for about 90 per cent of the total non-food credit deployed by all scheduled commercial banks, for the month of January 2019 are set out in Statements I and II.

Highlights of the sectoral deployment of bank credit are given below:

  • On a year-on-year (y-o-y) basis, non-food bank credit increased by 13.1 per cent in January 2019 as compared with an increase of 9.5 per cent in January 2018.

  • Credit to agriculture and allied activities increased by 7.6 per cent in January 2019 as compared with an increase of 9.4 per cent in January 2018.

  • Credit to industry rose by 5.1 per cent in January 2019 as compared with an increase of 1.1 per cent in January 2018. Credit growth to ‘infrastructure’, ‘chemical and chemical products’, ‘all engineering’, ‘food processing’ and ‘petroleum, coal products & nuclear fuels’ accelerated. However, credit growth to ‘basic metal & metal product’, ‘textiles’, and ‘gems & jewellery’ decelerated/contracted.

  • Credit to the services sector expanded by 23.9 per cent in January 2019 as compared with an increase of 13.2 per cent in January 2018.

  • Personal loans increased by 16.9 per cent in January 2019 as compared with an increase of 20.0 per cent in January 2018.

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/2063


The CKP Co-operative Bank Ltd, Mumbai, Maharashtra, was placed under directions vide directive dated April 30, 2014, from close of business on May 2, 2014. The validity of the directions was extended from time to time vide subsequent Directives, the last being Directive dated November 27, 2018 and was valid upto February 28, 2019 subject to review.

It is hereby notified for the information of the public that, the Reserve Bank of India, in exercise of powers vested in it under sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949, hereby directs that the Directive dated April 30, 2014, as modified from time to time, issued to the above bank, the validity of which was last extended upto February 28, 2019 shall continue to apply to the bank for a further period of three months from March 01, 2019 to May 31, 2019, vide Directive dated February 26, 2019 subject to review.

A copy of the directive dated February 26, 2019 notifying the above extension is displayed at the bank’s premises for the perusal of public.

The aforesaid extension and/or modification by the Reserve Bank of India should not per-se be construed to imply that Reserve Bank of India is satisfied of substantive improvement in the financial position of the bank.

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/2059


(Amount in Billions of ₹)
16-FEB-2018 01-FEB-2019* 15-FEB-2019* 16-FEB-2018 01-FEB-2019* 15-FEB-2019*
  a) Demand & Time deposits from bks. 1436.29 1597.52 1581.85 1484.75 1641.17 1626.07**
  b) Borrowings from banks 716.75 761.47 819.11 720.33 761.95 819.72
  c) Other demand & time liabilities 74.05 105.01 87.81 75.53 105.76 88.68
  a) Deposits (other than from banks) 110022.74 121227.03 121211.77 112986.18 124313.44 124339.07
  i) Demand 11277.65 12439.02 12877.19 11548.52 12722.58 13162.78
  ii) Time 98745.09 108787.93 108334.63 101437.66 111590.79 111176.34
  b) Borrowings @ 3600.04 3595.51 3611.68 3638.92 3636.22 3652.65
  c) Other demand & time liabilities 5065.65 5085.62 5182.14 5148.61 5181.9 5288.88
III BORROWINGS FROM R.B.I. (B) 660.93 998.45 1245.28 660.93 998.45 1245.28
  Against usance bills and / or prom. Notes 0 0 0 0 0 0
IV CASH 608.53 675.85 680.69 625.32 692.38 696.93
V BALANCES WITH R.B.I. (B) 4504.29 4984.34 4918.43 4624.13 5108.79 5042.58
  a) Balances with other banks            
  i) In current accounts 150.96 141.44 123.13 171.66 163.53 147.07
  ii) In other accounts 1669.02 1971.98 2052.23 1807.43 2151.19 2232
  b) Money at call & short notice 228.04 270.65 288.25 379.28 418.3 437.7
  c) Advances to banks(i.e. due from bks.) 278.04 316.28 304.45 282.12 324.71 313.56 £
  d) Other assets 244.58 353.53 385.6 284.65 388.86 423.63
VII INVESTMENTS (At book value) 34028.05 33581.21 33542.99 34933.18 34526.74 34477.68
  a) Central & State Govt. securities+ 34013.89 33557.84 33531.01 34902.87 34448.52 34411.12
  b) Other approved securities 14.17 23.37 11.96 30.3 78.21 66.55
VIII BANK CREDIT (Excluding Inter Bank Advance) 82232.08 94295.28 94034.99 84745.77 97082.86 96838.45
  a) Loans, cash credits & Overdrafts $ 80114.17 92045.76 91748.09 82566.13 94786.44 94502.88
  b) Inland Bills purchased 179.84 217.31 223.98 202.33 230.83 238.12
  c) Inland Bills discounted 1307.73 1439.62 1448.67 1334.46 1465.03 1474.52
  d) Foreign Bills purchased 239.43 230.17 240.45 242.49 233.35 243.61
  e) Foreign Bills discounted 390.91 362.47 373.74 400.35 367.26 379.26
* Provisional figures incorporated in respect of such banks as have not been able to submit final figures.
(A) Demand and Time Liabilities do not include borrowings of any Scheduled State Co-operative Bank from State Government and any reserve fund deposits maintained with such banks by any co-operative society within the areas of operation of such banks.
** This excludes deposits of Co-operative Banks with Scheduled State Co-operative Banks. These are included under item II (a).
@ Other than from Reserve Bank, National Bank for Agriculture and Rural Development and Export Import Bank of India.
(B) The figures relating to Scheduled Commercial Banks’ Borrowings in India from Reserve Bank and balances with Reserve Bank are those shown in the statement of affairs of the Reserve Bank. Borrowings against usance bills and/ or promissory notes are under Section 17(4)(c) of the Reserve Bank of India Act, 1934. Following a change in the accounting practise for LAF transactions with effect from July 11, 2014, as per the recommendations of Malegam Committee formed to review the Format of Balance Sheet and the Profit and Loss Account of the Bank, the transactions in case of Repo/ Term Repo/MSF are reflected under "Borrowings from RBI".
£ This excludes advances granted by Scheduled State Co-operative Banks to Co-operative banks. These are included under item VIII (a).
+ Includes Treasury Bills, Treasury Deposits, Treasury Savings Certificates and postal obligations.
$ Includes advances granted by Scheduled Commercial Banks and State Co-operative Banks to Public Food Procurement Agencies (viz. Food Corporation of India, State Government and their agencies under the Food consortium).

Food Credit Outstanding as on
(₹ in Billions)
Date 16-Feb-18 1-Feb-19 15-Feb-19
Scheduled Commercial Banks 475.52 677.3 617.4
State Co-operative Banks 191.47 230.27 230.27

The expression ‘ Banking System ‘ or ‘ Banks ‘ means the banks and any other financial institution referred to insub-clauses (i) to (vi) of clause (d) of the explanation below Section 42(1) of the Reserve Bank of India Act, 1934.

No. of Scheduled Commercial Banks as on Current Fortnight: February 15, 2019: 148

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/2057