Individuals contributed over half of bank deposits in 2017-18, says RBI

Mumbai: The Reserve Bank of India (RBI) reported that more than half of bank deposits in 2017-18 were contributed by individuals.

According to the report, the highest share across all population groups, rural/semi-urban/urban/ metropolitan were contributed by individuals.

Total deposits in banks increased from Rs 1,09.43 lakh crore at end-March 2017 to Rs 117 lakh crore in March 2018.

The shares of current, savings and term deposits stood at 9.7 per cent, 32.1 per cent and 58.2 per cent, respectively, in March 2018, revealed the data released by the central bank Monday.

Further, savings deposits attracted more flows than term and current deposits for the second consecutive year.

"Non-resident deposits recorded higher growth than aggregate deposits during the year, after witnessing an outflow in the previous year. Nearly two-thirds of incremental deposits were contributed by the household sector, followed by the foreign sector and the financial sector," the RBI said.

Private sector banks mobilised more incremental deposits (nearly 60 per cent) than others.

On an outstanding basis, public sector banks held around two-thirds of total deposits, the RBI said.

The private corporate sector, however, maintained substantial deposits with private banks.

Uttar Pradesh was the highest contributor to incremental deposits by households for the second consecutive year, with Maharashtra, Telangana and Karnataka also recording significant shares in deposit mobilisation.

Eight states, Maharashtra, Delhi, Uttar Pradesh, Karnataka, West Bengal, Tamil Nadu, Gujarat and Kerala, accounted for over two-thirds of total deposits, the RBI said.