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Systematix Research Report
The Indian banking sector's current accounts and savings accounts growth narrative has been weakening with CASA growth at 2.4% QoQ/14.5% YoY/6.3% year-to-date as on end-December 2021 (as compared to 3.0% QoQ/15.2% YoY/9.2% YTD).
Considering year-to-date growth number, we opine, the banking system wouldn't be able to clock even 14% YoY growth rate by the end-March 2022.
The decline in CASA was driven by both current account and savings account deposit, which grew by 0.5% and 7.9% on YTD basis in end-Dec-21 (from 3.0% and 10.9% on YTD basis in end-Dec-20).
We expect CASA growth rate would fall off the cliff (17.6% YoY in March 2021) to 12.5% -13.5% YoY in March-22. It's important to note, term deposit mobilisation has weakened further to 6.0% YoY/3.7% YTD as against 8.2% YoY/6.1% YTD in Dec-20.
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