Net Demand and Time Liability (NDTL)

What is net demand and time liability (NDTL)?

NDTL is sum of demand and time liabilities (deposits) of banks with public and other
banks wherein assets with other banks is subtracted to get net liability of other banks.
Deposits of banks are its liability and consist of demand and time deposits of public and
other banks.
Demand and time deposits from public form the largest part of bank deposits.
Demand deposits include all liabilities which are payable on demand and includes
current deposits, demand liabilities portion of savings bank deposits, demand drafts,
balances in overdue fixed deposits etc.
Time deposits are those which are payable otherwise on demand and includes fixed
deposits, staff security deposits, time liabilities portion of savings bank deposits etc.
Banks also invest in demand and time deposits of other banks and certificate of
deposits. Banks also borrow from other banks in call market etc. This represents banks
liability to other banks.
NDTL is calculated and reported every fortnight Friday by banks.
NDTL is used by banks for computation of CRR, SLR and now LAF.
Chart below shows trend of demand and time deposit from public for all scheduled
banks from 2001 till June 2013.

Source: RBI

From above chart, we can observe that time deposit forms largest part of deposits from
public as compared to demand deposits.
Time deposit contributes to around 90% and demand deposit contributes around 10%
of aggregate deposits for all scheduled banks.



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Mar-01Mar-02Mar-03Mar-04Mar-05Mar-06Mar-07Mar-08Mar-09Mar-10Mar-11Mar-12Mar-13Jun-13
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Trend of Demand and Time Deposit from Public
Time Deposit
Demand Deposit



Chart below shows fortnightly trend in NDTL of all scheduled banks from 2005 to June
2013.
Source: RBI
From the above chart, we can see NDTL of all scheduled banks have been rising over
the years.
CAGR for all scheduled banks NDTL from March 2000 to 2013 is around 17%.
NDTL for all scheduled banks as on 28
th
June 2013 was around ` 79339bn.
Bank and Area wise contribution to Deposits









From above two charts, we can see nationalized banks have maximum contribution to
deposits of 52% while area wise metropolitan cities dominate with 55%.
How the deposits are used


For any further clarification contact mahvash.ariyanfar@idfc.com