Although inflation data showed a decline in the middle of the year, the RBI did not make any change in the policy rate. Because of this, interest rates on fixed deposits have become higher. Now this planning of RBI has worked. Due to better interest rates, the share of fixed deposits in total deposits in banks increased to more than 61 percent from a year ago. RBI’s MPC has kept the interest rates unchanged from February 2023.
Due to which the repo rate has become 6.50 percent. Due to high repo rate, banks increase interest rates on home loans and other retail loans. On the other hand, banks also increase schemes like fixed deposits to increase deposits. Due to which costs will be reduced and savings will be more in times of inflation. Let us also tell you what has been revealed in the latest report of RBI.
FD participation increased
According to the data of Reserve Bank of India (RBI), common people are giving preference to fixed deposits. The growth of fixed deposits carrying attractive interest has outpaced the growth of current and savings accounts (CASA). Its share in total deposits increased from 59.8 percent a year ago to 61.4 percent in September this year.
RBIA Quarterly Basic Statistical Returns (BSR):
Deposits in Scheduled Banks – Released September 2024. The report said that with the tight monetary policy, a large amount of deposits have been shifted to fixed deposits with higher interest rates. FDs with interest rates above 7 percent increased to 68.8 percent from 54.7 percent a year ago.
accumulated data
According to the information, the annual bank deposit growth in September 2024 was 11.7 percent. This is almost the same as the previous quarter. Deposits across all population categories (rural/semi-urban/urban/metropolitan) recorded double-digit annual growth. Branches located in metropolitan cities contributed 66.5 percent of the total deposits during the second quarter of the financial year 2024-25. Their share in total deposits was 54.7 percent.
According to RBI, 51.4 percent of the total deposits were with individuals. The share of women depositors in personal deposits is about 40 percent. Deposit growth in public sector banks increased to 9 per cent year-on-year in September 2024 from 8.1 per cent in June 2024. However, in other bank groups it is less than 15 percent. The share of senior citizen deposits increased to 20.1 percent in September 2024 from 19.7 percent a year ago.
Also reduce bank loans
According to the second BCR on outstanding loans of scheduled banks, bank credit growth slowed to 12.6 per cent year-on-year in September 2024 from 15.3 per cent in March 2024. The loan share of metropolitan branches of banks was 60.6 percent. A low growth of 11.6 percent was recorded in these branches. The share of credit from non-RRB scheduled commercial banks in agriculture, industry, housing and personal (non-housing) credit was 11.5 per cent, 23.7 per cent, 16.5 per cent and 14.9 per cent respectively.
They registered annual growth of 13.2 per cent, 10.4 per cent, 13.2 per cent and 17.5 per cent respectively. It says that the credit growth of the private corporate sector will increase to 16.5 percent in September 2024. Working capital credit increased to 15.3 percent from 14.1 percent a year ago. The share of women borrowers in personal loans is gradually increasing and stood at 23.6 per cent in September 2024.
