Term deposits, which offer more attractive return, outpaced the growth in CASA (current account and savings account), and their share in total deposits rose to 61.4% in September 2024 from 59.8% a year ago, as per RBI data. The Reserve Bank of India on Tuesday released Quarterly ‘Basic Statistical Return' (BSR): Deposits with Scheduled Commercial Banks - September 2024.
"A substantial amount of deposits have shifted to higher interest rate bucket during the latest monetary policy tightening cycle; term deposits bearing over 7% interest rate has increased to 68.8% from 54.7% a year ago," it said.
As per the BSR, bank deposits growth (y-o-y) at 11.7% in September 2024 remained close to that in the previous quarter. Deposits of all population groups (rural/semi-urban/urban/metropolitan) recorded double-digit annual growth.
During the second quarter, 66.5% of the total incremental deposits were contributed by the metropolitan branches, which have 54.7% share in total deposits.
Of the total deposits, 51.4% was held by individuals; female depositors owned nearly 40% of the deposits by individuals, the RBI said.
Deposits growth (y-o-y) of public sector banks inched up to 9% in September 2024 (8.1% in June 2024), which, however, remained well below that for other bank groups at above 15%. The share of senior citizens' deposits increased to 20.1% in September 2024 from 19.7% a year ago.
According to another quarterly BSR on 'Outstanding Credit of Scheduled Commercial Banks', bank credit growth (y-o-y) moderated to 12.6% in September 2024 from 15.3%, net of merger, in March 2024.
Metropolitan branches of banks, which accounted for 60.6% of loans, recorded lower growth of 11.6%.
Agriculture, industry, housing and personal (non-housing) loans had 11.5%, 23.7%, 16.5% and 14.9% shares, respectively, in credit by non-RRB SCBs; they recorded 13.2%, 10.4%, 13.2% and 17.5% growth (y-o-y), respectively.
"Credit to private corporate sector exceeded the headline credit growth and stood at 16.5% (y-o-y) in September 2024; working capital loans accelerated to 15.3% from 14.1% a year ago," it said.
The share of female borrowers' loans to individuals has been rising gradually and it stood at 23.6% in September 2024.
Further, public sector banks and private sector banks which have 53.2% and 41.8% shares, respectively, in credit by non-RRB SCBs, recorded 13% and 11.9% increase (y-o-y), respectively, in September 2024.
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