RBI data: Bank deposit growth slowed to 10% in March 2022

29 Jun 2022 , 09:58 AM

According to Reserve Bank of India (RBI) statistics, Scheduled Commercial Banks’ (SCBs’) deposit growth slowed to 10% year over year in March 2022 from an increase of 11.9% in the previous month. 

RBI reported that during 2021—2022, growth in current, savings, and term deposits was 10.9 percent, 13.3%, and 7.9%, respectively. The RBI published information on Scheduled Commercial Bank Deposits – March 2022 on Tuesday.

The information demonstrated that interest rates on term deposits continued to decrease over the fiscal years 2021—2022, consistent with the monetary and liquidity conditions.

It stated, “The percentage of term deposits yielding over 6% interest rate decreased to 14.4% in March 2022 (31% a year earlier; 78.7% two years ago).”

According to the central bank, the percentage of Current Account and Savings Account (CASA) deposits in all deposits has been rising over time and was 44.8% in March 2022, up from 41.7% three years prior.

As per the report, these low-cost deposits made up 60.9% and 55.6% of new deposits in the fiscal years 2020—21 and 2021—22, respectively.

Banks’ metropolitan branches, which handle more than half of all deposits, accounted for 51.5% of new deposits in the fiscal year 2021—2022 (FY 2021—2022). The same percentage was 59.6% during the same time last year.