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MUMBAI TOPS the list of cities with the maximum money in bank vaults. India’s financial capital, which is home to 45,000 millionaires and 28 billionaires according to a New World Wealth report, accounts for almost 16.24 per cent, or Rs 15.98 lakh crore of total bank deposits. Of these, five per cent of total bank deposits in the country, amounting to Rs 4,97,210 crore, are held by households in Mumbai, according to Reserve Bank of India (RBI) data.
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The ratio of deposits held by households to total deposits in Mumbai is 31.1 per cent. Private corporate sector holds 19.1 per cent, or Rs 3,05,260 crore of the total deposits and foreign sector holds 14.7 per cent, or Rs 2,34,780 crore, going by RBI data. Total bank deposits in India, which were Rs 98,41,290 crore on March 31, 2016, have now crossed the Rs 100 lakh crore mark.
However, this would have changed after the government and the RBI announced withdrawal of the legal tender character of Rs 500 and Rs 1,000 notes on November 8, 2016, a senior banker said. As much as 86 per cent, or over Rs 15 lakh crore, of the notes in circulation was withdrawn during the 50-day period ended December 30, 2016.
Delhi closely follows Mumbai with households in the national capital holding deposits of Rs 4,67,220 crore as on March 31, 2016, says an RBI study on composition and ownership pattern of deposits. Total deposits held by the government, financial sector, NBFCs, households and the foreign sector in Delhi works out to Rs 9,74,600 crore.
Chennai comes third with households holding Rs 1,60,790 crore in bank deposits and Kolkata Rs 1,54,150 crore. The four top metros — Mumbai, Delhi, Chennai and Kolkata — account for 13 per cent, or Rs 12,79,370 crore of the total deposits of Rs 98,41,290 crore in Indian banks as on March 31, 2016.
The RBI data says that as much as 61.54 per cent, or Rs 60,57,080 crore, of the total deposits is in metros and towns or urban centres. The rural sector accounts for only the remaining 38.46 per cent. According to New World Wealth, in terms of millionaires and billionaires, Mumbai is followed by Delhi and Bengaluru at the second and third place respectively. Millionaires or high net worth individuals refer to individuals with net assets of US $1 million, or Rs 6.7 crore, or more. Billionaires refer to individuals with net assets of US $1 billion, or Rs 6,700 crore, or more.
More than half — 51.5 per cent — of the total deposits were raised by metropolitan branches followed by urban branches, at 22.8 per cent, and semi-urban branches, at 15.4 per cent. While term deposits dominated the total deposits in these branches, savings deposits dominated in rural branches.
While households owned the majority of deposits, the government sector and the private corporate sector contribute 12.8 per cent and 10.8 per cent respectively. On an all-India basis, a majority — 63.8 per cent — of 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.
