PSBs report sharp rise in deposits thanks to YES Bank, Franklin fiasco

Last financial year saw a series of banks failures starting with Punjab & Maharashtra Co-operative Bank and culminated in near collapse of YES Bank, India's 5th-largest private sector bank at its peak

After losing market share in deposits to private lenders, public sector banks (PSBs) have seen a surge in deposits in the past few months, as many savers become risk-averse, thanks to the YES Bank fiasco and Franklin Templeton bond fund blow-up.

PSBs reported a sharp rise in fresh deposits during the January-March 20 quarter and in April 2020, owing to the perceived safety of government-owned banks in increasingly uncertain economic environment.

A top executive of South-based PSB said his bank had seen inflow deposits of over Rs 3,000 crore in post-Covid period. In a normal course, a substantial chunk of this