ANALYSIS OF ADVANCES AND DEPOSITS OF COMMERCIAL BANKS

Abstract

The banking sector plays a crucial role in the economic development of a country by mobilizing savings and providing credit for productive activities. Advances and deposits are two fundamental components that determine the financial strength and operational efficiency of commercial banks. Deposits represent the primary source of funds for banks, while advances constitute the major avenue through which these funds are utilized to generate income. This study analyzes the growth, trends, and relationship between advances and deposits of commercial banks over a specific period. The research examines factors influencing deposit mobilization and credit expansion, evaluates the performance of commercial banks, and assesses their contribution to economic growth. The analysis highlights the significance of maintaining a balanced deposit-advance ratio to ensure liquidity, profitability, and financial stability. The findings provide valuable insights into the banking sector's performance and offer recommendations for improving resource mobilization and credit management practices.