Households in Maharashtra are parking money in bank deposits at a slower rate than the rest of the country, shows data from a Reserve Bank of India report titled ‘Composition and Ownership Pattern of Deposits with Scheduled Commercial Banks (SCBs)’. As on March 2018, Maharashtra had only 14.5 per cent market share of household deposits compared to 17 per cent at the end of March 2013, according to a Kotak Institutional Equities analysis of the RBI data.
Maharashtra’s loss has come at a time when the central and eastern regions are gaining marketshare in household deposits. The central region — Chhattisgarh, Madhya Pradesh, Uttar Pradesh and Uttarakhand — saw its share climb from 15.2 per cent in March 2013 to 16.6 in March 2018. The eastern region — Bihar, Jharkhand, Sikkim, Odisha and West Bengal — registered a marketshare gain of 1.3 percentage points during the same period to 15.2 per cent as on March 2018. For the country as a whole, household deposits grew at a compounded annual growth rate (CAGR) of 12.1 per cent from 2012-2018, according to Kotak calculations. All-India household sector deposits stood at Rs 74.1 lakh crore at the end of March 2018.
In comparison, Maharashtra’s growth was 8.6 per cent compounded over 2012-18. That was the lowest in the country barring Nagaland, where household deposits grew at 8.4 per cent. For Maharashtra, the year-on-year growth rates have been progressively worsening, dipping to as low as 6.2 per cent in March 2018. The fastest CAGR during the 2012-18 was registered by Andhra Pradesh and Telangana (combined figures) at 23.9 per cent, Haryana at 15.8 per cent and Odisha at 15.4 per cent.
As Mumbai is the financial capital, it is only natural that the ratio of household deposits to total deposits is low in the state. The ratio grew from 40 per cent in 2012 to 45 in 2018. In comparison, the number grew from 60 per cent to 63 on an all-India basis.