Households own 61.5% of bank deposits: RBI

Households own 61.5% of bank deposits: RBI The Reserve Bank of India has said households owned the majority of deposits, 61.5 per cent of the total bank deposits of Rs 98,41,290 crore. The government sector and the private corporate sector followed contributing 12.8 per cent and 10.8 per cent, respectively, it said in a study. “A majority (63.8 per cent) of the deposits was term deposits. The

combined share of current and savings deposits, however, increased from 34.9 per cent in 2015 to 36.2 per cent in 2016,” the RBI said in a study on bank deposits.

More than half (51.5 per cent) of the total deposits was raised by metropolitan branches followed by urban branches (22.8 per cent) and semi-urban branches (15.4 per cent). While term deposits dominated the total deposits in these branches, savings deposits dominated in rural branches, the RBI said.

Public sector banks maintain the largest share (70.6 per cent) in total deposits followed by private banks (21.6 per cent).

Seven states/Union Territories, namely, Maharashtra, Delhi, Uttar Pradesh, Karnataka, Tamil Nadu, West Bengal and Gujarat comprised around 66 per cent of total deposits of the banks in India as on March 31, 2016. Maharashtra alone contributed around 23 per cent of the total deposits, the RBI study said.

“With ongoing implementation of withdrawal of SBN, the business outlook for banks remains cloudy — especially, the volume of change on deposits has been unprecedented in such a short time frame. The near-term earnings outlook is sloping into the negative territory as change in business mix is tilting unfavourably for net interest margins, and headwinds to asset quality are accentuating on account of change in business eco system,” ICICI Securities said in a report.