According to the Reserve Bank of India (RBI) data, bank deposits grew 11.9% YoY during 2020-21 as against 8.8% in 2019-20 on the back of high growth in current account and savings account (CASA) deposits. Over a year ago, the share of CASA deposits has increased to 43.7% in March 2021, as against 41.7% in the year ago period. This is as per the RBI’s March 2021 data on deposits with scheduled commercial banks showed on Thursday.
Household sector held 64.1% in total deposits, among institutional categories. The Hindu Undivided Families (HUFs), formed a major constituent in the sector contributing 55.8% in aggregate deposits, the data showed.
Non-Financial Corporation’s bank deposits increased by 18.8% in 2020-21 and their share in total deposits increased to 16.2% in March 2021.
Banks in metropolitan cities, which account for over half of total deposits, accounting for 59.6% of incremental deposits in 2020-21 as compared to 43.2% in the previous year.
The data showed Maharashtra, UP and Karnataka were the three major states holding one-third of total household sector’s outstanding deposits and over 40% of its incremental deposits in 2020-21.
Private sector banks share in total bank deposits continued to rise at the cost of public sector banks and stood at 30.5% as against 29.5% a year ago, accounting for about half of the deposits of financial and non-financial corporations.
As interest rates on term deposits are going down, the share of term deposits carrying less than 6% increased to 69% in March 2021 from 21.3% a year ago.
The share of short-term deposits rose to 32.8% as against 25.4% a year ago, the data showed. It said that the interest rate bracket of 5 to 6% had the highest concentration at 36.8% of total term deposits.