This is the highest normal time fortnightly growth in deposits. One sees banking sector deposit growth of over Rs 1lakh crore only during the end of a quarter. "It is very likely that this was because of the first payout of the 7th Pay Commission salary and pension increases, comprising of arrears of FY16 and FY17. Bank loan growth has been very sluggish so far this year with only retail loans propping up loan books. Retail loans grew 19% year-on-year compared to overall bank credit growth of 7.7% while loans to industry has remained almost flat, according to RBI data.The multiplier effect of the pay commission award is expected to push economic growth as well.

Source: Economic Times September 18, 2016 22:07 UTC