Chennai: The growth of bank deposits across the market have decreased to 10 percent year-on-year (YoY) as per the Reserve Bank of India's (RBI) data, said Kotak Securities Ltd in a report.
As per the report, there is a noticeable retard in the bank deposit growth in metropolitan, semi-urban and rural India with household savings being comparatively weak. Further the bank branch expansion has decreased mainly by the public sector banks. The report said private banks continue to gain market share but their control is much more in urban markets as compared to rural and semi-urban markets.
The current account, savings account deposits has slowed even though the ratio has moved up higher to approximately 45 percent led by higher savings ratio in recent years. The private banks have increased their market share in current account and in the corporate segment while public banks have been losing share increasingly in the household and government sectors, Kotak Securities said in its statement.
According to the report, the duration of term deposits continues to fall, especially post Covid and the share of non-individuals is quite high at 45 percent of the overall term deposits. Meanwhile, bank loans rose 16.4 percent on year in the fortnight ended September 23, the highest year-on-year loan growth in nearly nine years, latest data from the Reserve Bank of India showed.
Forex reserves fall over 2-year low of USD 532.66 bln
IMF to flag recession risks, USD-tn in economic output between now and 2026
India's services sector growth slowed to a 6-month low in Sept