New Delhi, March 4 (IANS) Consumers continue to exhibit a strong preference to place deposits in the 1-3-year category, as per a report by Kotak Institutional Equities on deposit trends across banks.
65 per cent of the overall deposits contracted are in the 1-3-year buckets, the report said. A part of it can probably be explained by the interest rates offered where the interest rate differential is probably pushing back consumers in placing longer term deposits. Lenders are also lot more comfortable in this bucket given that the linkages to loan yields are getting broken with the introduction of EBLR linked loans.
Savings deposits are a lot more diversified than current and term deposits. Savings growth was slower in urban and metro markets, while current account deposits were weak in all regions and term deposit growth was strong across regions, the report said.
The market share split on deposits between public banks and private banks is 60:35. Households dominate deposits at 60 per cent. Public banks have 70 per cent share of their deposits coming from households, while for private banks it is 55 per cent.
There is a marginal shift in government deposits to private banks, while the share in corporate and household remains unchanged.
Private banks have 85 per cent of their deposits coming from metro/urban regions, while that for public banks it is 70 per cent.
The share of individual and non-individual deposits is unchanged at 50 per cent. Individual deposits are higher for public and non-individual share is higher for private banks, the report said.
–IANS
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