Over half of bank deposits contributed by individuals; NRI deposits record highest growth: RBI data

Mumbai: More than half of the bank deposits were contributed by individuals, who held the highest share across all population groups – rural/semi-urban/urban/ metropolitan, during 2017-18, as per an RBI data. 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 percent, 32.1 percent and 58.2 percent, respectively, in March 2018, revealed the data released by the central bank on 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. [caption id=“attachment_4499583” align=“alignleft” width=“380”]  Representational image. Reuters.[/caption] Private sector banks mobilised more incremental deposits (nearly 60 percent) than other bank groups. 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.