Deposit growth rises to 17.2 pc in September, says RBI

In the September quarter of 2022, growth increased to 17.2 per cent, from 7 per cent in the year-ago period, reflecting a pick-up in economic activities.

The Reserve Bank said all population groups and bank groups had double digit annual growth in September 2022, from 14.2 per cent a quarter ago and 7 per cent a year ago.

Aggregate deposits growth y-o-y, which remained in the close range of 9.5 - 10.2 per cent since June 2021, stood at 9.8 per cent in September 2022. Bank branches in metropolitan centres have recorded higher annual growth than those in rural, semi-urban and urban areas since December 2020.

Private sector bank group has been better than public sector banks, foreign and regional rural in deposit mobilisation, the said.

In September 2022, term deposits' growth increased to 10.2 per cent from 6.4 per cent a year ago, according to the data. A year ago, savings deposits' growth decreased to 8.8 per cent and 9.4 per cent, from 17.5 per cent and 14.5 per cent.

The share of savings deposit in total deposits, which increased from 32.4 per cent in June 2019 to a peak of 35.2 in June 2022, moderated marginally in the latest quarter to 34.7, the added.

The all-India credit-deposit C-D ratio increased to 74.8 per cent in September 2022, from 73.5 per cent a quarter ago and 70 per cent a year ago. In September 2022 82.8 per cent of the C-D ratio for metropolitan bank branches, which have a dominant share in the banking business, was much higher at 87.6 per cent.