Banks are always looking to increase the amount of cash they have. If people deposit the money they've hoarded in banks, it can only be good for the banks. Banks earn money from the loans they give out, there's a fifty-fifty chance of any loan becoming NPA. There's little that can be done about it besides ensuring that there's sufficient collateral for the loan being given out.
Also, from what I know, banks don't give out loans from the amounts in savings accounts of people. It is much too liquid.
There are also other advantages of banks infusing money in market. It leads to a higher growth rate (downside being increased inflation).