Private financial institution deposit share rises to 30.5% at the price of PSBs: RBI

Share of personal sector banks in whole financial institution deposits continued to rise “at the cost of public sector banks” and stood at 30.5 per cent as towards 29.5 per cent a 12 months in the past, in line with the Reserve Bank of India knowledge.
Private banks account for about half of the deposits of economic and non-financial companies in addition to remainder of the world sectors, the RBI stated. Out of whole Rs 154.43 lakh crore deposits, personal banks account for Rs 46.23 lakh crore as of March 2021. While there have been 21.13 lakh financial institution accounts, personal banks had 3.35 lakh accounts and PSU banks 14.68 lakh accounts.
“With the downward shift in the interest rates on term deposits, the share of term deposits carrying less than 6 per cent interest rate surged to 69.0 per cent in March 2021 from 21.3 per cent a year ago,” the RBI stated. The rate of interest bracket ‘5 to lower than 6 per cent had highest focus (36.8 per cent) of time period deposits, it stated.
According to the RBI, majority of time period deposits had been initially contracted for ‘one year to less than three years’ maturity. The share of short-term deposits (authentic maturity of lower than one-year) rose to 32.8 per cent (25.4 per cent a 12 months in the past); when it comes to residual maturity, 75.7 per cent of the time period deposits had been due for maturity inside one 12 months. Among institutional classes, the family sector held 64.1 per cent share in whole deposits. Individuals — together with Hindu Undivided Families (HUFs) — had been the main constituent of the family sector and contributed 55.8 per cent in mixture deposits, the RBI stated.
Bank deposits of non-financial companies surged by 18.8 p.c throughout 2020-21 and their share in whole deposits elevated to 16.2 p.c in March-2021, it stated.