The Reserve Bank of India (RBI) has come out with its latest report on deposits with scheduled commercial banks (SCBs).
According to the report, bank deposits fell year-on-year (y-o-y) to 10 per cent in March 2022 from 11.9 per cent a year ago, even as current, savings and term deposits increased by 10.9 per cent, 13.3 per cent and 7.9 per cent, respectively, during financial year 2021-22.
Also, the share of current account and savings account (CASA) deposits in total deposits have been increasing over the years. It stood at 44.8 per cent in March 2022 as compared to 41.7 per cent three years ago.
According to the report, low-cost deposits accounted for 60.9 per cent and 55.6 per cent of incremental deposits during 2020-21 and 2021-22, respectively.
As of March 2022, female depositors accounted for 19.8 per cent of total deposits, the report said. Their share in incremental bank deposits more than doubled from 15.2 per cent in FY 20-21 to 34.3 per cent in 2021-22, on a yearly basis.
Metropolitan branches of banks, which account for over half of total deposits, accounted for more than half of incremental deposits during 2021-22, at 51.5 per cent. Incidentally, in 2020-21, they accounted for 59.6 per cent of all incremental deposits.
The household sector held the dominant share (62.6 per cent) in total deposits followed by non-financial corporations, general government, rest of the world, and financial corporations, respectively, the report said.
The government and financial corporations together accounted for over a fourth of the incremental deposits during 2021-22 as compared to 5.8 per cent share in the previous year.
According to the RBI report, large-size deposits (i.e., Rs. 1 crore and above) accounted for nearly 40 per cent share of the total term deposits.
The report further said: “Consistent with the monetary and liquidity conditions, interest rates on term deposits moderated further during 2021-22. The share of term deposits bearing over 6 per cent interest rate came down to 14.4 per cent in March 2022 (31.0 per cent a year ago and 78.7 per cent two years ago).
The report further mentioned that seven states – Maharashtra, National Capital Territory (NCT) of Delhi, Uttar Pradesh, Karnataka, Tamil Nadu, West Bengal, and Gujarat, accounted for 63.3 per cent of bank deposits.