Household savings slide in third quarter amid Covid-19 pandemic cloud

The ratio of household (bank) deposits to GDP declined to 3 per cent in the third quarter from 7.7 per cent in the previous quarter

Household financial savings moderated in the third quarter (Q3) of 2020-21 (FY21) for the second consecutive quarter, driven by a significant weakening in household financial assets, which more than offset the moderation in household financial liabilities.

Preliminary estimates released by the Reserve Bank of India (RBI) showed that household financial savings were at 8.2 per cent of gross domestic product (GDP) in the Q3FY21.

The financial savings were recorded at 10.4 per cent in the second quarter (Q2), and stood at a healthy 21 per cent in the first quarter (Q1) of FY21, which was the quarter that bore the