Page 3 - Deposits In Banks

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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Too-big-to-fail US lenders rake in deposits after three banks fail

JPMorgan Chase & Co., the largest US bank, alone received billions of dollars in recent days, and Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. are also seeing higher-than-usual volume

Banks increase deposit rates on tight liquidity, high credit growth

Banks have made a beeline to increase rates on their deposits as liquidity in the system has tightened and the credit growth in the system has remained consistently high

Valuation gap with peers is expected to narrow for Axis Bank

It is leveraging the digital ecosystem, focusing on acquisition of corporate salary accounts, and also cross-selling products to existing clients

Bank credit grows 17.5% in a fortnight; deposits up 10%: RBI data

Country's largest lender State Bank of India (SBI) raised deposit rates by 15-100bps, the maximum increase being for bulk deposits

Bank of Baroda hikes MCLR up to 30 basis effective December 12

The revised rates will be effective from December 12

ICICI, Axis, IDFC First Bank hike deposits rate for above Rs 2 crore

Hike rates after credit growth expands 15.3%

Flows into NRI deposits nosedive to mere $349 mn in June quarter

Outstanding deposits declined to $135.9 billion at the end of June 2022 from $141.5 billion a year ago.

As credit demand grows, banks may soon be scrambling for deposits

Loan growth in India is at a 3-year high and seen inching up further as economic activity gains traction but a much slower growth in deposits could send banks scurrying for funds

South Indian Bank net profit up 10-fold in Q1, asset quality improves

In Q1, South Indian Bank's gross advances saw a growth of 10.95 per cent compared to the same period last financial year