The working results of scheduled commercial banks for the first six months of 1969 are yet to be published by many banks as there has been some delay in finalising the accounts. But the earnings of two major institutions, which have been published, seem to indicate that even with a spectacular growth in deposits, it has not been possible to improve profitability significantly as working expenses have been rising and heavy expenditure is also being incurred on the opening of new branches. But there would have been a higher level of gross income if available funds could be used. As the heavy expansion of credit against foodgrains has been effected mainly by the State Bank of India, the credit-deposit ratio of other banks particularly has tended to decline and there has been a heavy accumulation of surplus resources. The banking system, however, is in a position to derive good benefit out of the sizable additions to working funds, if as a result of a revival in economic activity there was an Increase in demand for funds.
