Page 2 - Bank Deposits

Small, big and systemically important banks

The systemically important bank classification is no comment on how secure depositors' money is in other banks. Sit back, relax and enjoy the higher rates for now

Facility to exchange, deposit Rs 2K notes to remain closed on Jan 22: RBI

The facility to exchange and deposit Rs 2,000 notes will not be available at the Reserve Bank offices on January 22, the day of the consecration of the Ram temple in Ayodhya. The Department of Personnel and Training issued an order for a half-day closure for central government establishment on Monday. Public sector banks, insurance companies, financial institutions and regional rural banks (RRBs) across the country will remain closed for half day on January 22. "The facility of exchange / deposit of Rs 2000 banknotes will not be available on Monday, January 22, 2024 at any of the 19 Issue Offices of the Reserve Bank of India due to the half-day closure announced by the Government of India," the central bank said in a statement. The facility will resume on Tuesday, January 23, 2024, it added. On May 19 last year, the RBI announced the withdrawal of Rs 2,000 denomination bank notes from circulation. The total value of Rs 2,000 bank notes in circulation, which amounted to Rs 3.56 la

RBI takes steps to curb inoperative bank accounts: Things you should know

The RBI has issued fresh guidelines to reduce the quantum of inoperative bank accounts and unclaimed deposits with focus on tracing customers, and reducing fraud risk. Check all the details

Banks raise over Rs 1 trn through CDs in Dec amid liquidity crunch

CDs, which are short-term debt instruments, are utilised by banks to raise funds

Majority prefer banks deposits to park savings, 21% in gold, says Survey

The affinity of Indians for gold and traditional bank deposits remain unwavering as about 77 per cent of respondents preferred to safeguard their earnings through bank deposits and 21 per cent choose to invest in gold in 2023, according to a survey. The Money9 annual personal finance pulse survey indicated a positive trend in insurance penetration, with over 27 per cent of households holding life insurance policies in 2023, higher from 19 per cent in the 2022 survey. However, a 53 per cent of households still lack health insurance coverage, according to the survey, which is based on responses from over 35,000 households across 20 states. It further said that India's burgeoning stock market is gradually making its way into the pockets of investors, with the percentage of stock market investors surging from a mere 3 per cent to 9 per cent compared to the previous year. Additionally, 10 per cent of Indian families have now embraced mutual fund investments, up from 6 per cent in 2022.

Unclaimed deposits with banks rise by 28% to Rs 42,270 crore in FY23: Govt

There has been a 28 per cent annual increase in unclaimed deposits with the banks to Rs 42,270 crore as on March 2023, Parliament was informed on Tuesday. As compared to Rs 32,934 crore unclaimed deposits with public and private sector banks in FY22, the amount increased to Rs 42,272 crore at the end of March 2023, an increase of 28 per cent. As much as Rs 36,185 crore unclaimed deposits were with public sector banks while Rs 6,087 crore were with private sector banks at the end of March 2023. Banks send unclaimed deposits of account holders lying in their accounts for 10 or more years to RBI's Depositor Education and Awareness (DEA) Fund. RBI has taken various steps to reduce the quantum of unclaimed deposits and return such deposits to rightful claimants, Minister of State for Finance Bhagwat K Karad said in a written reply to Rajya Sabha. As per the RBI's direction, banks have been advised to display the list of unclaimed deposits in accounts that are inactive or inoperative fo

Bank of Maharashtra top among PSU lenders in loan, deposit growth in Q2

State-owned Bank of Maharashtra (BoM) retained the top spot among public sector lenders in loan and deposit growth in percentage terms during the second quarter of the current financial year. The deposit and advances of the Pune-based lender posted an over 20 per cent rise, the highest by any public sector bank during the July-September period. With a growth rate of 23.55 per cent, gross domestic advances of the bank rose to Rs 1,83,122 crore at the end of September 2023, according to published quarterly numbers of public sector banks (PSBs). It was followed by Indian Overseas Bank with 20.29 per cent growth, Central Bank of India (17.26 per cent growth) and UCO Bank with 16.53 per cent growth. The country's largest lender State Bank of India (SBI) stood at the seventh spot with 13.21 per cent rise in domestic advances growth. However, SBI's total loans were about 16 times higher at Rs 28,84,007 crore as compared to Rs 1,75,676 crore of BoM in absolute terms. With regard to depos

Reserve Bank of India allows premature deposit withdrawal up to Rs 1 crore

Banks typically offer higher interest rates on non-callable deposits

Bandhan Bank Q2 results: Net profit rises to Rs 721cr on loan portfolio

Private lender Bandhan Bank on Wednesday reported a whopping 245 per cent jump in its net profit to Rs 721 crore in the second quarter of the 2023-24 fiscal as compared to Rs 209 crore in the year-ago period. The loan portfolio of the Kolkata-headquartered bank at the end of the July-September quarter stood at Rs 1.08 lakh crore, reflecting a 12.3 per cent rise over the corresponding period last year. Bandhan Bank MD & CEO Chandra Shekhar Ghosh said the total deposits of the lender at the end of the quarter stood at Rs 1.12 lakh crore, registering a growth of 12.8 per cent year-on-year.

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

Banks raise Certificate of deposit by 20 bps in Oct to cater credit demand

CDs, which are short-term debt instruments employed by banks to amass funds, have seen an uptick in rates

87% of Rs 2,000 notes came as bank deposits after withdrawal:RBI Guv Das

Reserve Bank Governor Shaktikanta Das on Friday said 87 per cent of the Rs 2,000 denomination notes being withdrawn have returned as deposits into banks while the rest has been exchanged across counters. Addressing a press conference after the announcement of the bi-monthly monetary policy review, Das said Rs 12,000 crore of the Rs 3.56 lakh crore worth of Rs 2,000 notes in circulation as on May 19, 2023 are yet to come back. Last on Saturday, the RBI had said that Rs 3.42 lakh crore of notes had been received back as of September 29, and Rs 14,000 crore was yet to come back. The central bank had also extended the deadline for return of the notes by a week. Das said the RBI wants to "emphatically" focus on the 4 per cent headline inflation target, and till the price rise number does not get down, the monetary policy will be "actively disinflationary". As the banker to the government, the RBI does not have any worry on the central government finances, Das said. The "outlier" loan .

Search for unclaimed deposits in 30 banks available on UDGAM: RBI

In August, the RBI launched the portal to assist the public in searching for their unclaimed deposits across banks in one location

Deposit growth picked up pace, credit offtake moderated in August

The data for both credit and deposit excludes the impact of the merger of HDFC with HDFC Bank in July 2023

Bank deposit growth touches six-yr high of 13.5% in fortnight ended Aug 11

Deposit growth in banks reached a six-year high of 13.5 per cent in the fortnight ended August 11, a report said on Monday. Care Edge Ratings said it is the first time since 2017 that the deposit growth has crossed 12.5 per cent. Over the past few months, deposit growth has been half of credit growth, and many lenders have had to hike rates to attract depositors. Credit growth increased 19.7 per cent during the fortnight, driven by the merger between HDFC and HDFC Bank, the report said, adding that it would have been 14.8 per cent if not for the USD 40 billion-amalgamation. In case of deposit growth, the merger impact was more limited, the rating agency said. According to the rating agency, had the HDFC deal not happened, the deposit growth rate would have been 12.8 per cent because of the mortgage major HDFC's reliance on other avenues beyond deposits for its liabilities. The scrapping of Rs 2,000 denomination notes and their subsequent depositing had helped banks with deposits,

Commercial banks' deposit growth nearly at 7-year high, shows RBI data

Deposit growth hit 14.12% on 6 Jan, 2017, months after demonetisation of Rs 1000 currency note and the then Rs 500 note which was announced on 8 November 2016

Withdrawal of Rs 2,000 notes pushes deposit to six-year high in June

Withdrawal of Rs 2,000 notes by Reserve Bank on May 19 and the subsequent near total return of the currency to the system has buoyed deposit accretion to a six-year high of Rs 191.6 lakh crore in June, according to a report. Earlier this month, the RBI said more than three-fourths of the total 3.62 lakh crore of Rs 2,000 bank notes have come back to the system by way of deposits (over 85 per cent) and the rest as note exchanges. According to Sanjay Agarwal, a senior director with Care Ratings, deposits witnessed a healthy on-year growth of 13 per cent to Rs 191.6 lakh crore, which is the highest in the past six years (since March 2017) in the fortnight ending June 30, partly supported by the withdrawal of the Rs 2,000 currency notes and higher interest rates on deposits. Deposits rose 13 per cent in the reporting fortnight and sequentially, it expanded by 3.2 per cent to Rs 191.6 lakh crore and in absolute terms, deposits rose by Rs 22 lakh crore in the trailing 12-month period when

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

Credit grows by 16.22% YoY and bank deposits 12.96%, shows RBI data

Besides robust demand across segments, rise tied to quarter-end business also pushed the loan volumes in fortnight, bankers said

Rs 2,000 notes withdrawal: Bank deposits rise by Rs 3.26 trn in fortnight

Credit offtake has remained robust even amid the significant rise in interest rates, and global uncertainties related to geo-political, and supply chain issues