Share of households in FY16 deposits increases, govt’s dips


Mumbai: Households contributed most to deposit growth in FY16, while deposits held by government agencies shrank according to data released by the Reserve Bank of India (RBI) on Monday. The latest numbers show that government and entities in the financial sector (banks in particular) brought down their deposits with other banks. However, individuals and corporates increased their share of deposits.

Bank deposits in FY16 grew by 8.8%, or Rs 8.68 lakh crore, to Rs 98.41 lakh crore. Of this, growth in household deposits was 11%, or Rs 6.65 lakh crore. The overall deposit growth would have been higher but for 14% drop in state government deposits to Rs 3.82 lakh crore. Interbank deposits also fell 24.5% to Rs 2.71 lakh crore while corporate deposits jumped nearly 115% to Rs 10.65 lakh crore.

The RBI on Monday released the data on composition and institutional ownership pattern of deposits with scheduled commercial banks (SCBs) as on March 31, 2016. Households continue to own the majority of deposits with their share rising to 61.5% from 60.1% earlier. The government sector and the private corporate sector followed, contributing 12.8% and 10.8%, respectively. A majority (63.8%) of deposits were term deposits. The combined share of current and savings deposits, however, increased from 34.9% in 2015 to 36.2% in 2016.

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

Public sector banks continued to maintain the largest share (70.6%) in total deposits followed by private sector banks (21.6%). Seven states — Maharashtra, Delhi, Uttar Pradesh, Karnataka, Tamil Nadu, West Bengal and Gujarat — accounted for around 66% of total deposits of SCBs in India as on March 31, 2016. Maharashtra alone contributed around 23% of the total deposits.