Business Standard

Household savings

Deposits remain preferred saving instrument but equity gains steam

Equity, investment funds share in total financial wealth up by over 50% between 2011-12 and 2022-23

Deposits remain preferred saving instrument but equity gains steam
Updated On : 19 Jul 2024 | 10:23 PM IST

Financialisation of household savings can fund private capex: Goldman Sachs

The report titled 'Changing Contours of Indian Household Savings' notes that within financial savings, allocations are shifting from banks to non-banks, especially into retirement savings

Financialisation of household savings can fund private capex: Goldman Sachs
Updated On : 22 May 2024 | 9:34 PM IST

Household savings likely to rise in FY24, liabilities to moderate: CRISIL

Household savings are likely to rise in fiscal 2023-24, an arm of a domestic rating agency said on Tuesday. Crisil Market Intelligence and Analytics said there are "early indicators", which show that household savings would have revived in FY24, while growth in household liabilities would have moderated. "Proxy data suggest a rebound in the overall savings rate in FY24, with contribution from households," it said in a note, adding that household savings constitute 60 per cent of the total savings in the economy. It can be noted that official data released last year showed a dramatic fall in India's net financial household savings rate to a 47-year-low of 5.3 per cent from 7.3 per cent in FY22. The Crisil report explained that households have been borrowing at a faster pace than they have been saving since the pandemic, due to which the net household financial savings, which was arrived at by adjusting financial savings for liabilities. Factors like retail credit push by banks and

Household savings likely to rise in FY24, liabilities to moderate: CRISIL
Updated On : 21 May 2024 | 7:35 PM IST

Need to reconsider sachetisation of F&O trade to safeguard savings: CEA

Cautioning against household savings getting invested in futures and options trade, Chief Economic Advisor V Anantha Nageswaran on Saturday said there is a need to reconsider sachetisation of F&O trade because it requires different financial literacy. Speaking at the CII's Annual Business Summit, 2024, Nageswaran said whenever financial sector development precedes national development the story hasn't ended well for other countries as well. Asian crisis 1997-98 is a very important example, he said. When we take pride in the fact that we have the world's largest trading volume in futures and options (F&O), we need to ask ourselves is that a sign of progress or a sign of concern, the CEA said. He said the financial sector has a responsibility to ensure that capital market grows in those areas where we can actually harness Indian household savings for productive purposes. Many of the people currently engaged in the market do not understand them The sachetisation of futures and ...

Need to reconsider sachetisation of F&O trade to safeguard savings: CEA
Updated On : 18 May 2024 | 5:42 PM IST

Household savings dip over Rs 9 trn in 3 yrs to Rs 14.16 trn in 2022-23

Net household savings declined sharply by Rs 9 lakh crore to Rs 14.16 lakh crore in three years to 2022-23, according to the latest National Account Statistics 2024 of the Ministry of Statistics and Programme Implementation. The net household savings peaked at Rs 23.29 lakh crore in 2020-21. These have been on the decline since then, the data showed. The net household savings declined to Rs 17.12 lakh crore in 2021-22 and dipped further to a five-year low of Rs 14.16 lakh crore in 2022-23. The previous low of net household savings was Rs 13.05 lakh crore in 2017-18 which increased to Rs 14.92 lakh crore in 2018-19 and Rs 15.49 lakh crore in 2019-20. The data showed that the investment in mutual funds almost trebled to Rs 1.79 lakh crore in 2022-23 in three years from Rs 64,084 crore in 2020-21. It was Rs 1.6 lakh crore in 2021-22. The household investment in shares and debentures almost doubled to Rs 2.06 lakh crore in 2022-23 from Rs 1.07 lakh crore in three years from 2020-21. I

Household savings dip over Rs 9 trn in 3 yrs to Rs 14.16 trn in 2022-23
Updated On : 07 May 2024 | 5:57 PM IST

Consumer confidence for year ahead improves further: RBI survey

Households' sentiments on the general economic situation and employment prospects recorded notable improvements for both the current period as well as the upcoming year

Consumer confidence for year ahead improves further: RBI survey
Updated On : 07 Apr 2024 | 7:53 PM IST

Lower inequality amid slower growth: A mixed bag

What other broad macroeconomic implications can be inferred from the household consumption expenditure survey factsheet?

Lower inequality amid slower growth: A mixed bag
Updated On : 01 Apr 2024 | 10:36 PM IST

PM Modi announces PM Surya Ghar Muft Bijli Yojana, to invest over 75000 cr

PM Surya Ghar Muft Bijli Yojana: PM Modi announces scheme to provide free 300 units of electricity every month by investing 75000 crore on this project

PM Modi announces PM Surya Ghar Muft Bijli Yojana, to invest over 75000 cr
Updated On : 15 Feb 2024 | 1:45 PM IST

Financial savings increased by 14% in absolute terms: RBI deputy guv Patra

Patra also mentioned that households are shifting from financial savings to physical savings

Financial savings increased by 14% in absolute terms: RBI deputy guv Patra
Updated On : 06 Oct 2023 | 8:54 PM IST

Household savings rate plummeted to five-decade low in 2022-23: RBI

The household savings rate plummeted to a five-decade low in 2022-23 as people started spending after the restrictions on movement ended after the pandemic, the Reserve Bank of India said on Friday. Deputy Governor Michael Patra said the dip in net financial savings of households to 5.1 per cent of the Gross Domestic Product (GDP) in FY23 also includes an increase in liabilities, much of which are home loans that will show as investments in the next year. When asked if the decline in savings to a 47-year-low is indicative of over-leverage among the households, Patra reminded that historically, the average household savings rate was about 7.5 per cent but during the pandemic, it had gone up due to a variety of factors, including inability to spend due to the restrictions and also because of precaution savings. "as these movement restrictions were removed, people went out to spend and started to draw down those precaution savings. That is some of the phenomenon that we're seeing now,"

Household savings rate plummeted to five-decade low in 2022-23: RBI
Updated On : 06 Oct 2023 | 5:25 PM IST

India's economic growth threatened as household savings hit 16-year low

Household financial assets, including bank deposits, cash and equity investments, after deducting debt servicing and consumption, eased to 5.1 per cent of gross domestic product

India's economic growth threatened as household savings hit 16-year low
Updated On : 25 Sep 2023 | 9:25 AM IST

TMS Ep527: Akasa Air trouble, Twitter paywall, markets, household savings

What's weighing down Akasa Air? Will you pay for Twitter? What next after JPMorgan index inclusion? What do household net financial savings mean? All answers here

TMS Ep527: Akasa Air trouble, Twitter paywall, markets, household savings
Updated On : 25 Sep 2023 | 8:00 AM IST

Planning before saving: How to get more from your income

Increase income and reduce expenses, say financial planning experts

Planning before saving: How to get more from your income
Updated On : 24 Sep 2023 | 8:21 PM IST

55% of retail credit used for housing, education, car buys in last 2 years

A low-interest rate regime in India during the pandemic resulted in a "paradigm shift" of households' savings from financial to physical assets.

55% of retail credit used for housing, education, car buys in last 2 years
Updated On : 22 Sep 2023 | 7:59 AM IST

'No distress', people investing in other fin products, says FinMin

The finance ministry on Thursday dismissed the criticism over the impact of declining household savings on the economy, saying people are investing in different financial products and "there is no distress". The statement posted on X by the ministry brushed aside critical voices raised with regard to the decadal fall in household savings and its overall effect on the economy. "Lately, critical voices have been raised w.r.t. to household savings and its overall effect on the economy. However, data indicates that changing consumer preference for different financial products is the real reason for the household savings and there is no distress as is being circulated in some circles," it said. Net household savings declined to a 47-year low of 5.1 per cent of gross domestic product in FY23 as compared to 7.2 per cent recorded in the previous year, as per the data released by the Reserve Bank in its latest monthly bulletin. At the same time, annual financial liabilities of households ro

'No distress', people investing in other fin products, says FinMin
Updated On : 21 Sep 2023 | 2:50 PM IST

Household savings fall to decades low, borrowing rises: RBI data

Annual financial liabilities of households increases by 5.8% of GDP

Household savings fall to decades low, borrowing rises: RBI data
Updated On : 20 Sep 2023 | 1:39 PM IST

Budget and the growth process

The government's command over household savings needs to be reduced for stimulating demand and private credit

Budget and the growth process
Updated On : 20 Feb 2023 | 10:28 PM IST

Mutual funds' share in household savings jump 150% in FY22: RBI data

Retail investments in MF rise as flows into bank deposits drop

Mutual funds' share in household savings jump 150% in FY22: RBI data
Updated On : 28 Sep 2022 | 10:31 PM IST
Updated On : 08 Jun 2022 | 6:08 AM IST

Consumer sentiments improve

The improvement in sentiments during the early months of 2022 essentially reflects an increase in the proportion of households that believe that their current household incomes are better than they we

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Updated On : 07 Mar 2022 | 11:59 PM IST