Bank deposits log growth of 11.7% in September 2024

Reserve Bank of India (RBI) released the web publication 'Deposits with Scheduled Commercial Banks for September 2024 today. Bank deposits growth (y-o-y) at 11.7 per cent in September 2024 remained close to that in the previous quarter. Deposits of all population groups (viz., rural/semi urban/urban/metropolitan) recorded double-digit annual growth; during Q2:2024-25, 66.5 per cent of the total incremental deposits contributed by the metropolitan branches, which have 54.7 per cent share in total deposits.

RBI noted that of the total deposits, 51.4 per cent was held by individuals; female depositors owned nearly 40 per cent of the deposits by individuals. A substantial amount of deposits have shifted to higher interest rate bucket during the latest monetary policy tightening cycle; term deposits bearing over 7 per cent interest rate has increased to 68.8 per cent from 54.7 per cent a year ago and 33.7 per cent in March 2023.

As term deposits offered more attractive return, they also outpaced the growth in CASA (current account and savings account) deposits, and their share in total deposits rose to 61.4 per cent in September 2024 from 59.8 per cent a year ago. Deposits growth (y-o-y) of public sector banks inched up to 9.0 per cent in September 2024 (8.1 per cent in June 2024), which, however, remained well below that for other bank groups at above 15 per cent. The share of senior citizens' deposits increased to 20.1 per cent in September 2024 from 19.7 per cent a year ago.

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