Kolkata: The banking sector saw contraction in both credit and deposits outstanding in the fortnight ended August 15, Reserve Bank of India's latest weekly data showed.A net Rs 6534 crore of deposits were withdrawn from the banking system in the fortnight ending August 15 even as banks continued to amass foreign currency denominated funds from non-residents, Reserve Bank of India data showed.This trend suggests that banks are not renewing the bulk deposits mobilised at higher costs when these are coming for maturity, Bank of Baroda chief exconomist Madan Sabnavis said. In other words, banks are replacing bulk deposits by the foreign currency non resident bank deposits (FCNR-B) they mobilised using the concessional swap facility provided by the banking regulator.Also read: How and why Zee founder Subhash Chandra's Rs 22,006 crore debt was chopped to just Rs 6.5 croreThis slowed the pace of year-on-year deposit growth to 14.7% at the end of August 15 from the decade-hgh print of 15.4% recorded in the preceding fortnight. The outstanding bank deposits at the end of the latest reporting cycle stood lower at Rs 269.31 lakh crore.Banks' credit outstanding also came down by Rs 70639 crore during the fortnight under review to Rs 220.08 lakh crore. The credit growth print also contracted to 18.3% against 19.3% in the preceding 15-day period, data showed.Lower credit offtake could be a reflection of slower economic activity, economists said.