Page 2 - Deposits In Banks

How to bridge the wide gap between banks' credit and deposit growth?

To address the issue of deposit growth trailing lending growth, which can have potential systemic risks, some banks are also adopting innovative strategies to attract deposits

Discouraging retail play in F&O may help banks attract more deposits: Khara

Regulatory moves discouraging retail investors' derivative market bets may help the banking system garner the much-needed deposits, SBI Chairman Dinesh Kumar Khara has said. Khara said the budget announcements like the tweaks on the short-term and long-term capital gains will not lead to much gains from a deposit accretion perspective. "F&O (future and options) kind of things are being discouraged for the retail (investor) by the regulator. Those who are resorting to such kind of an instrument, they might come back to the banking system," Khara told PTI over the weekend. It can be noted that concerns over losses incurred by 90 per cent of investors in the derivative trades have led to fears of household savings being blown in speculation rather than being deployed for productive purposes among policymakers. As per capital markets regulator Sebi, retail investors lost Rs 52,000 crore in such activity in FY24 alone which necessitates a clampdown. Sebi has come up with a seven-point

HDFC Bank's loan book shrinks in June quarter, deposits flat sequentially

The deposit book as of June 30 was Rs 23.79 trillion, almost flat compared to the previous quarter. Deposit growth was 16.5 per cent year-on-year, excluding the impact of the merger

South Indian Bank, Karur Vysya Bank post double digit growth in deposits

The deposits of South Indian Bank grew by 11.21% year-on-year (Y-o-Y) to Rs 1,01,929 crore from Rs 91,651 cr. Meanwhile, the deposits of Karur Vysya Bank rose by 16.28% Y-o-Y to Rs 89,113 cr

Conscious call not to accept high cost deposits, says HDFC Bank CEO

HDFC Bank shares came under pressure after the Oct-Dec earnings numbers due to slower than expected growth in deposits and compression in net interest margin

Deposits paucity may hit Indian banks credit growth in FY25: Report

Private lenders with high loan-to-deposit ratio more vulnerable, says S&P

Can green deposits be withdrawn prematurely? All your questions answered

Green fixed deposits provide guaranteed returns and have a range of tenure options available, spanning from 18 months to 10 years. Premature withdrawal is allowed under certain conditions

Bank of Baroda hikes domestic retail term deposit rates upto 125 bps

Aims to increase share of short-term retail deposits

November sees highest issuances of certificates of deposit in FY24

In November, banks issued CDs worth Rs 75,884 crore

Higher interest rate puts pressure on CASA deposits, shows survey

Higher interest rates have resulted in a reduction in Current Account Savings Account (CASA) deposits as most of the savers are shifting towards term deposits, according to a report. CASA is low-cost deposits mobilised by banks, and higher amount of low-cost deposits mean better margins for banks. A survey by Ficci and Indian Banks' Association (IBA) released on Thursday showed that long term credit demand has seen continued growth in sectors like infrastructure, textiles, and chemicals. Food processing and metals iron & steel have also witnessed accelerated long-term loan disbursements in the past six months. Infrastructure is witnessing an increase in credit flow, with 67 per cent of the respondents indicating an increase in long term loans as against 57 per cent in the previous round, according to the 17th round of the Ficci-IBA Survey. The survey said that the outlook on expectations for the growth of non-food industry credit over the next six months is optimistic, with 42 per

RBI launches 'UDGAM', centralised web portal for unclaimed deposits

The web portal will help users identify and approach their banks for either claiming unclaimed deposits or making their deposit accounts operative at their banks, the RBI said

Capital Small Finance Bank Q1 total business grows 15.58% to Rs 12,584 cr

Capital Small Finance Bank Limited on Monday said its total business grew by 15.58 per cent to Rs 12,584 crore for the quarter ended June 2023. The Jalandhar-headquartered bank's total business was Rs 10,888 crore during the first quarter of the last financial year, according to a statement. The bank said its deposits grew by 14.64 per cent to Rs 7,064 crore and advances went up by 16.81 per cent to Rs 5,519 crore. The net worth of the bank increased by 28.81 per cent to Rs 69 crore during the first quarter of the current fiscal. Sarvjit Singh Samra, managing director and chief executive officer of Capital Small Finance Bank said, "We are proud to report robust profits, which underscore the resilience of our business model and the effectiveness of our strategic initiatives. "As we continue to navigate an ever-evolving financial landscape, we remain focused on sustaining this positive momentum and creating long-term value for our stakeholders.

Deposit growth hits 6-yr high on Rs 2000 note withdrawal, higher FD rates

In absolute terms, bank deposits have increased by Rs 22 trillion in the trailing twelve-month period

Banks post robust credit growth in Q1; deposit mobilisation improves

Bank of Maharashtra said its loans expanded by 25 per cent YoY to Rs.1.75 trillion. This pace was much higher than the banking system's 15.4 per cent growth till June 16, 2023, according to RBI

Higher deposit pricing to compress net interest margins by 10-20 bps

Banks are expected to see a 10-20 bps compression in their net interest margins (NIMs) to 3-3.1 per cent this fiscal as they price deposits higher to attract more funds, says a report. However, lower credit costs will offset this tailwind on account of continued benign asset quality, which will help them maintain profitability steady after touching a decadal high of 1.1 per cent on a return on assets basis, last fiscal, Crisil Ratings said in a report on Tuesday. According to Krishnan Sitaraman, a senior director and chief ratings officer at the agency, NIMs have peaked at the system level. Competition for deposits has driven banks to hike rates since October 2022, and they can increase the rates further given that deposit growth continues to lag credit growth. With an estimated 30-35 per cent of deposits expected to come up for re-pricing this fiscal at higher rates, and the shift from current and savings deposits to term deposits continuing, overall deposit costs will rise this ..

Share of Casa in overall deposits at 7-year low of 11.6% by FY23-end

Worse still, Casa deposits' share of incremental deposits has fallen to single digit (6.7%), for the second time in 10 years

RBI to set up portal to search across multiple banks for unclaimed deposits

The Reserve Bank on Thursday announced to set up a centralised portal to access details of unclaimed deposits by depositors or their beneficiaries across various banks. About Rs 35,000 crore unclaimed deposits as of February 2023 were transferred to RBI by public sector banks (PSBs) in respect of deposits which were not operated for 10 years or more. In order to improve and widen the access of depositors or beneficiaries, it has been decided to develop a web portal to enable search across multiple banks for possible unclaimed deposits, RBI Governor Shaktikanta Das said while announcing the first bi-monthly monetary policy for current financial year 2023-24. State Bank of India (SBI) tops the chart of unclaimed deposits worth Rs 8,086 crore followed by Punjab National Bank Rs 5,340 crore, Canara Bank Rs 4,558 crore and Bank of Baroda Rs 3,904 crore.

Small US banks see record drop in deposits after SVB collapse: Fed data

Deposits at small banks fell $119 billion to $5.46 trillion in the week ended March 15

BofA gets more than $15 bn in deposits after Silicon Valley Bank collapse

The inflows offer a first glimpse into deluge of deposits that made its way to the country's largest banks as customers fearful of a spreading crisis sought refuge in the firms seen as too big to fail

Top headlines: FPIs seek six more mths from FinMin, 1st India chip fab soon

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