You are here: Home » Economy & Policy » News
Business Standard

People saving less, household savings moderate in third quarter FY21

The ratio of household (bank) deposits to GDP also declined to 3.0 per cent in the October -December quarter of FY21 from 7.7 per cent in the previous quarter.

Topics
Households | India's economic growth | Economic recovery

IANS  |  New Delhi 

Money

The opening of the economy and easing of Covid infections last year has affected the financial savings of

According to Preliminary Estimates of Household Financial Savings released by Reserve Bank of India (RBI), household financial savings is placed at 8.2 per cent of GDP in Q3 of 2020-21. This is a sequential moderation for the second consecutive quarter after having spiked in the pandemic-hit first quarter of 2020-21.

The moderation was driven by a significant weakening in the flow of household financial assets, which more than offset the moderation in the flow of household financial liabilities, the RBI said in its report.

The ratio of household (bank) deposits to GDP also declined to 3.0 per cent in the October -December quarter of FY21 from 7.7 per cent in the previous quarter.

The RBI said that despite higher borrowings from banks and housing finance companies, the flow in household financial liabilities was marginally lower in Q3, following a marked decline in borrowings from non-banking financial companies.

The household debt to GDP ratio, which is based on select financial instruments, has been increasing steadily since end-March 2019. It rose sharply to 37.9 per cent at end-December 2020 from 37.1 per cent at end-September 2020.

--IANS

sn/in

 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, June 23 2021. 16:02 IST
RECOMMENDED FOR YOU