Page 2 - Deposit

Deposit insurance cover hike may dent banks' net profit up to Rs 12K cr

While the proposed increase in the deposit insurance limit is not known, under various scenarios, the insured deposit ratio (IDR) may increase to 47.0-66.5 per cent

Deposit insurance demystified: Exploring the future of bank deposit safety

From a risk perspective, it is better to spread your deposits across multiple banks, given the extent of the current deposit cover

Banks continue to rely on certificates of deposits amid liquidity woes

Outstanding amount on CDs hits all-time high of Rs 5.19 trillion as of fortnight ending February 7

Banks' deposit insurance hike may be on the anvil amid periodic review

Should deposit insurance revisits be episodic? Like after the collapse of Bank of Karad in 1992 and the Punjab and Maharashtra Cooperative Bank fiasco in 2019

Entire claims settled by deposit insurer was for co-op banks in FY24

Over 90% of the insured are co-op banks

Deposit rates drop more in easing phase, lending rates rise in tightening

RBI data suggest that during the tightening period, the transmission on fresh deposits and loans was higher for state-owned banks than for private sector banks

RBI policy: Hike in FCNR(B) deposit rate may have limited impact on flows

An FCNR (B) account lets customers maintain a fixed deposit in India in freely convertible foreign currencies for a tenure ranging from one to five years

Jan-Dhan accounts: A new option for state-owned banks to mobilise deposits

Following this, many banks are exploring previously untapped areas to mobilise deposits while choosing not to engage in an interest rate war

Several banks oppose draft LCR circular, say may affect loan growth

Claim it will impact retail deposits as 90% are digitally linked

Assam Police form 14 SITs to investigate unregulated deposit scheme cases

DGP GP Singh detailed that the Assam Police's action against unregulated deposit schemes has spanned 14 districts, resulting in 28 cases being registered and 59 arrests made

Lenders' deposit shortage could put speed limit on credit-fueled investment

The govt is making the deposit crunch worse by taxing savers aggressively, but keeping the proceeds away from the financial system. Bankers are compounding the problem by not paying enough to savers

SBI can support loan growth, lower deposit growth not a challenge: Khara

Amid concerns over the continuing gap between deposit and loan growth, SBI Chairman Dinesh Khara on Friday said it is not posing any challenges for the country's largest lender as it is able to support the uptick in advances. The bank is unwinding a part of its excess investments in government securities to arrange the required resources to support the loan growth, Khara told reporters here. It can be noted that for nearly two years, the deposit growth is trailing the credit expansion for the banking system, and SBI has also been seeing the same trends in its business. Some experts have been opining that this is due to flow of savings into higher yielding capital market alternatives, while some like SBI's own researchers also called the concerns a "statistical myth", saying the overall quantum of incremental deposits has been higher than advances since FY22. Asked about how concerning the situation is at present, Khara said, "We are in a position to support our loan book growth wel

Amid slow deposit growth, PSBs urge govt to keep cash balances with them

Move to help lenders to gain low cost deposits

Transmission of policy rate has been greater on deposits, shows RBI data

Among different bank groups, state-owned banks have seen a greater increase in interest rates on term deposits-both new and existing-compared to their private sector peers

RBI asks banks to monitor credit-deposit gap to avoid liquidity issues

Indian banks' loans rose 13.7% as of July 26 from a year earlier, while deposits grew 10.6%, latest provisional data from the RBI showed

RBI guv warns on deposit growth, urges banks to innovate fund mobilisation

Concerned over household savings moving towards alternative investment avenues, RBI Governor Shaktikanta Das on Thursday asked banks to mobilise deposits through innovative products and services by leveraging their vast branch network. "Banks are taking greater recourse to short-term non-retail deposits and other instruments of liability to meet the incremental credit demand. This, as I emphasised elsewhere, may potentially expose the banking system to structural liquidity issues," he said. Observing that alternative investment avenues are becoming more attractive to retail customers, he said, as a result banks are facing challenges on the funding front with deposits trailing loan growth. Banks, he said, need to focus more on mobilisation of household financial savings through innovative products and service offerings and by leveraging fully their vast branch network. Expressing concern over high growth in 'top-up' housing loans, Das said the regulatory prescriptions relating to lo

Banks' loans rose 19% in two weeks to April 19, deposits up 13%: RBI data

Outstanding loans fell Rs 98,700 crore ($11.84 billion) to Rs 16,400,000 crore in the two weeks to April 19

Over 99% independent candidates lost deposits in LS polls since 1991

As India heads to the 18th general election, data over the years show voters' trust in independent candidates has been diminishing, with more than 99 per cent of independent candidates losing their deposits since 1991. Data compiled by the Election Commission of India show that since independence, even as the number of independent candidates has remained high, numbers of those winning polls have come down from over six per cent in 1951 and eight per cent in 1957, to around 0.11 per cent in 2019. An independent candidate is one who is not aligned with any recognised party. In the first elections of 1951-52, 533 independent candidates had contested, and 37 of them won, around 6.90 per cent. Election Commission regulations stipulate that candidates failing to secure a minimum of one-sixth of the total valid votes polled would have their deposits redirected to the treasury. The security deposit amount was Rs 500 for general candidates and Rs 250 for candidates from SC/ST communities i

Bandhan Bank advances in Q3 FY24 increase by 18.6% to Rs 1.6 trn

Total deposits grew 14.8% to Rs 1.17 trn, lender tells exchanges

Rs 2,000 note withdrawal to add Rs 1.5 trn of deposits to banks: Expert

The move to withdraw Rs 2,000 denomination notes will yield deposits of up to Rs 1.5 lakh crore for the banking system, Axis Bank Chief Economist Saugata Bhattacharya said on Wednesday. Notes of Rs 1 lakh to Rs 1.5 lakh crore will come back into the system as deposits, Bhattacharya told reporters, adding that this should take the overall deposit growth to over 11 per cent in FY24. As per RBI data, the total value of Rs 2,000 notes in the system is Rs 3.62 lakh crore. Holders of the notes can either deposit the notes at banks, or get them exchanged over bank counters. It can be noted that the banking system has been passing through what some call as a 'war for deposits' at present, with a wide gap between the credit and deposit growth numbers. Bhattacharya said he expects the credit growth to slow down to 13 per cent in FY24 from 16 per cent, even as the deposit growth number will rise to 11-12 per cent from the single-digit figure in FY23. Meanwhile, Bhattacharya said Reserve Bank