Bank deposits touch record Rs 200 lakh crore, double from 2016
Bank deposits touch record Rs 200 lakh crore, double from 2016
MUMBAI: Banks ended 2023 on a high note with their deposits crossing the Rs 200-lakh-crore milestone. Total deposits with the banking sector have doubled from Rs 100 lakh crore in September 2016, reflecting a compound annual growth rate of around 9.5%. While this is the fastest rate at which banks have added Rs 100 lakh crore to their deposit base, the rate of growth has slowed down compared to earlier.
According to RBI data, bank deposits stood at Rs 200.8 lakh crore as of December 29 – an increase of 13.2% from the year-ago period. Of this, Rs 176 lakh crore was in term deposits and the rest in current and savings account. Bank advances stood at Rs 159.6 crore, which is 20% more than December 2022 levels.
In recent years, there has been a marked shift of household savings to mutual funds. In 2023, the mutual fund industry added a record Rs 10 lakh crore to its total assets under management, taking the cumulative tally past the Rs 50-lakh mark – which is a fourth of total bank deposits. In 2003, while bank deposits stood at Rs 12.6 lakh crore, mutual funds had an AUM of only Rs 1.2 lakh crore.
Bank deposits have witnessed significant growth over the years. Starting at Rs 5.1 lakh crore in 1997, they doubled to Rs 10 lakh crore by June 2001. Then, the deposit base doubled again to Rs 20 lakh crore by March 2006. The fastest doubling occurred between March 2006 and July 2009, when deposits reached Rs 40 lakh crore.
For more news like this visit TOI. Get all the Latest News, City News, India News, Business News, and Sports News. For Entertainment News, TV News, and Lifestyle Tips visit Etimes