Bank deposits grew 11.9 percent year-on-year during 2020-21 compared to 8.8 percent in 2019-20 on the back of high growth in the current account and savings account deposits, RBI data showed.
The share of CASA deposits increased to 43.7 percent in March 2021 compared to 41.7 percent a year ago, according to the Reserve Bank of India (RBI’s) Deposits with Scheduled Commercial Banks – March 2021 data released on Thursday.
Among institutional categories, the household sector held a 64.1 percent share in total deposits.
Individuals, including Hindu Undivided Families (HUFs), were the major constituent of the household sector and contributed 55.8 percent in aggregate deposits, the data showed.
Bank deposits of non-financial corporations surged by 18.8 percent during 2020-21 and their share in total deposits increased to 16.2 percent in March 2021.
Metropolitan branches of banks, which account for over half of total deposits, accounted for 59.6 percent of incremental deposits during 2020-21 as against 43.2 percent in the previous year.
Three major states — Maharashtra, UP, and Karnataka — held one-third of the total household sector’s outstanding deposits and over 40 percent of its incremental deposits during 2020-21, the data showed.
The share of private sector banks in total bank deposits continued to rise at the cost of public sector banks and stood at 30.5 percent (29.5 percent a year ago), accounting for about half of the deposits of financial and non-financial corporations as well as the rest of the world sectors.
With the downward shift in the interest rates on term deposits, the share of term deposits carrying less than 6 percent interest rate surged to 69 percent in March 2021 from 21.3 percent a year ago.
The interest rate bracket of 5 to less than 6 percent had the highest concentration at 36.8 percent of total term deposits, it said.