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Private bank deposit share rises to 30.5% at the cost of PSBs: RBI

Private banks account for about half of the deposits of financial and non-financial corporations as well as rest of the world sectors, the RBI said. Out of total Rs 154.43 lakh crore deposits, private banks account for Rs 46.23 lakh crore as of March 2021.

By: ENS Economic Bureau | Mumbai |
September 24, 2021 3:44:05 am
While there were 21.13 lakh bank accounts, private banks had 3.35 lakh accounts and PSU banks 14.68 lakh accounts.

Share of private sector banks in total bank deposits continued to rise “at the cost of public sector banks” and stood at 30.5 per cent as against 29.5 per cent a year ago, according to the Reserve Bank of India data.

Private banks account for about half of the deposits of financial and non-financial corporations as well as rest of the world sectors, the RBI said. Out of total Rs 154.43 lakh crore deposits, private banks account for Rs 46.23 lakh crore as of March 2021. While there were 21.13 lakh bank accounts, private banks had 3.35 lakh accounts and PSU banks 14.68 lakh accounts.

“With the downward shift in the interest rates on term deposits, the share of term deposits carrying less than 6 per cent interest rate surged to 69.0 per cent in March 2021 from 21.3 per cent a year ago,” the RBI said. The interest rate bracket ‘5 to less than 6 per cent had highest concentration (36.8 per cent) of term deposits, it said.

According to the RBI, majority of term deposits were originally contracted for ‘one year to less than three years’ maturity. The share of short-term deposits (original maturity of less than one-year) rose to 32.8 per cent (25.4 per cent a year ago); in terms of residual maturity, 75.7 per cent of the term deposits were due for maturity within one year. Among institutional categories, the household sector held 64.1 per cent share in total deposits. Individuals — including Hindu Undivided Families (HUFs) — were the major constituent of the household sector and contributed 55.8 per cent in aggregate deposits, the RBI said.

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, it said.

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