Bank deposit growth moderated year-on-year in March, says RBI

New Delhi: Bank deposit growth has moderated year-on-year to 10.0 per cent in March 2022 as compared with 11.9 per cent a year ago, the Reserve Bank of India data showed.

During the financial year 2021-22, current, savings and term deposits increased by 10.9 per cent, 13.3 per cent and 7.9 per cent, respectively.

The share of current account and savings account deposits in total deposits has been increasing over the years and stood at 44.8 per cent in March 2022 as compared with 41.7 per cent three years ago, and these low-cost deposits accounted for 60.9 per cent and 55.6 per cent of incremental deposits during 2020-21 and 2021-22, respectively, the central bank said in a statement.

States such as Maharashtra, National Capital Territory (NCT) of Delhi, Uttar Pradesh, Karnataka, Tamil Nadu, West Bengal, and Gujarat together accounted for 63.3 per cent of the bank deposits.

Further, it said metropolitan branches of banks, which account for over half of total deposits, accounted for 51.5 per cent in incremental deposits during 2021-22.

Household sector held the dominant share in total deposits followed by non-financial corporations, general government, rest of the world and financial corporations, respectively.

Among those, female depositors accounted for 19.8 per cent of total deposits in March 2022, and their share in incremental bank deposits during 2021-22 increased to 34.3 per cent from 15.2 per cent in the previous year.

General government and financial corporations together account for over one fourth of the incremental deposits during 2021-22 as compared to 5.8 per cent share in the previous year.

Large size deposits, which is to the tune of Rs 1 crore and above), have nearly 40.0 per cent share in total term deposits, the central bank said.