Page 9 - Bank Deposits

Cash-to-GDP ratio could hit 14-15%, the highest since independence

This is assuming 10% contraction in India's nominal GDP; currency with public crossed Rs 26 trillion in mid September

How faster deposit growth could become counterproductive for banks

Should deposit growth continue to outpace credit growth, banks may end up ceding some hard-earned 25-50 bps improvement in profitability or net interest margin gained in the past two years

Bank credit up 5.26% to Rs 102.24 trn, deposits rise 11.98%: RBI data

In the fortnight ended September 13, 2019, bank credit was at Rs 97.13 trillion and deposits at Rs 127.22 trillion

A year later, PMC Bank depositors still struggling to get their money back

PMC Bank depositors have spent the last one year holding protests, meeting politicians, writing to various authorities in an effort to get their hard-earned money back.

Bank deposit may not be taken as collateral for market transactions: Report

This would be so as such instruments would not be accepted be accepted by clearing corporations to complete a transaction

Bank credit grows 6.18% to Rs 102.5 trn, deposits up 11%: RBI data

In the fortnight ended June 21, 2019, bank credit had stood at Rs 96.48 trillion and deposits at Rs 124.92 trillion

Bank deposits grow at 11.3% but credit growth moderates, shows data

Banks have also lowered their lending rates following the cut in the benchmark rates by the Reserve Bank of India (RBI).

Precautionary savings

Slowdown impact on household finances even before Covid

Surge in bank deposits due to govt borrowings, not savings: India Ratings

While deposit accretion has been strong, there has been shift in the profile of banks accruing them

Spike in bank deposits in Jan-May due to borrowings, not savings: Report

Cash in circulation has risen strongly by around Rs 3.5 trillion during the first five months of 2020, the highest in the past two decades

Bank credit grows 6.25% to Rs 102.23 trn, deposits up 10.64%: RBI

In the fortnight ended May 24, 2019, bank loans had stood at Rs 96.21 trillion and deposits at Rs 124.99 trillion, the RBI data showed

Bank credit growth slowed in Dec quarter on muted industrial demand

Loans sanctioned by public sector banks (PSBs) at the end of May 8 stood at Rs 5.95 trillion

Bank credit up 6.74% at Rs 102.69 trn; deposits grow 9.82% to Rs 137.11 trn

In the year-ago fortnight, bank loans had stood at Rs 96.20 trillion and deposits at Rs 124.83 trillion

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

Equal treatment

Govt should not tax two forms of debt differently

PPF to fetch 7.1%, NSC 6.8% as govt cuts small savings interest rates

This is because the government went for one of the steepest cuts of up to 1.4 percentage points in these interest rates to facilitate banks to lower their rates.

Banks' credit grows 6.13%, deposits 9% in the second half of Feb: RBI data

Growth in advances to the services sector decelerated to 8.9% from 23.9% in January 2019

Hike in deposit insurance cover will not hit banks' balance-sheets: RBI

The Reserve Bank does not see any major impact on the balance-sheets of banks due to the five-fold hike in deposit insurance to Rs 5 lakh. Following the failure of a number of cooperative banks, with the city-based PMC Bank being the latest and the largest last year, the budget allowed the Deposit Insurance and Credit Guarantee Corporation (DICGC) to raise deposit insurance coverage to Rs 5 lakh from Rs 1 lakh. "The premium is something, which we consider, will increase from 10 paise to 12 paisa per Rs 100 for the time being. So, the impact on banks' balance sheets is not likely to be much," RBI Deputy Governor B P Kanungo told reporters during the post-policy presser. The hike in deposit insurance coverage has been a long pending demand from bank depositors and it recently came to fore after the crisis at Punjab & Maharashtra Cooperative (PMC) Bank. It can be noted that in 2019 alone more than 30 cooperative banks went belly up in Maharashtra alone. The DICGC, a wholly-owned ...

Enhanced insurance cover of Rs 5 lakh on bank deposits from Tuesday: RBI

The cover is provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the RBI

Banks credit grows by 7.21%, deposits by 9.51%: RBI data

Non-food bank credit growth decelerated to 7 per cent in December 2019 from 12.8 per cent in December 2018