Bank Deposits

"We expect the portal to be ready in 3-4 months," said M Rajeshwar Rao, deputy governor, RBI

According to ICICI Securities, with the credit-deposit ratio at 75.3 per cent, this could put further pressure on deposit rates

This is the highest in a three-month period since merger announcement with HDFC Ltd

Banks were engaged in intense competition by offering higher interest rates on term money to mop up funds

Bandhan Bank's total deposits in the fourth quarter of last fiscal stood at Rs 1,08,069 crore, registering a rise of 12.2 per cent over the same period a year ago, the private lender said. Loans and advances during the quarter ended March 31 was at Rs 1,09,112 crore, reflecting a year-on-year growth of 9.8 per cent, it said in a release. Collection efficiency of micro-lending during the period under review came in at 98.5 per cent as against 98 per cent a year ago. The Kolkata-based bank said its current account, savings account (CASA) in the quarter to March stood at Rs 42,471 crore, representing a growth of six per cent over the corresponding period a year ago. Bulk deposits were at Rs 31,125 crore compared with Rs 21,890 crore in the fourth quarter of 2021-22, registering a growth of 42.2 per cent. The loan coverage ratio (LCR) of the bank stood at 157 per cent during the reporting period, the release added.

Ease of movement of funds on digital platforms and deployment of money by businesses from current accounts also played a role in pruning the share of CASA money

US and European regulators ignored basic risk management. But why do regulators allow financial sector firms to gamble with depositors' money?

One legal framework under discussion for expanding FDIC insurance would use the Treasury Department's authority to take emergency action and lean on the Exchange Stabilization Fund, the people said

Currently, most large lenders offer deposit rates between 6.75% and 7.30% for 1-2 year deposits and between 5.75% and 7.25% for longer-term deposits

Amid tight liquidity condition, banks have issued a record quantum of bonds, with gross issuances hitting an all-time high of Rs 91,500 crore so far this fiscal, and are likely to close the financial year with around Rs 1.4 lakh crore. Gross bond issuances by banks is estimated to reach Rs 1.3-1.4 lakh crore this fiscal as debt sales have already hit record high of Rs 0.915 lakh crore, surpassing the previous high of Rs 0.8 lakh crore in FY17, Icra Ratings said in a note on Monday. The agency said this alternate resource of fund raising by banks is on the back of widening credit-deposit gap. With credit demand continuing to outdo deposits throughout this fiscal, the overall gap between deposits and credit growth widened substantially. Incremental credit expansion stood at Rs 12.7 lakh crore, while deposit accretion continued to trail at Rs 8.9 lakh crore, till December 16, 2022. To bridge this gap, banks have been relying on various sources of funding such as refinance from financia

State-owned Bank of Maharashtra (BoM) on Tuesday said it has posted a credit growth of 21.81 per cent to Rs 1.57 lakh crore for the third quarter ended December 2022. The outstanding credit was Rs 1.29 lakh crore at the end of December 31, 2021, BoM said in a regulatory filing. The bank's deposits aggregated to about Rs 2.08 lakh crore as of December 31, 2022, registering a growth of 11.69 per cent over Rs 1.86 lakh crore at the end of December 31, 2021, it said. During the quarter, it said, the Current Account Savings Account (CASA) stood at 52.50 per cent of the total deposits. The Pune-headquartered lender recorded a total business growth of 15.83 per cent to Rs 3.65 lakh crore at the end of third quarter, as compared to Rs 3.15 lakh crore at the end of the same quarter in the previous fiscal.

Surojit Shome, MD and CEO of DBS Bank India, said having crossed the Rs one trillion business (deposit and loans) mark in September, the bank is looking to grow 3x in five years

The growth is driven by a low base, NBFC, retail credit, higher working capital demand driven by inflation and improvement in capacity utilisation ratio, and rising demand for fresh capex

Banks have made a beeline to increase rates on their deposits as liquidity in the system has tightened and the credit growth in the system has remained consistently high

It is leveraging the digital ecosystem, focusing on acquisition of corporate salary accounts, and also cross-selling products to existing clients

Country's largest lender State Bank of India (SBI) raised deposit rates by 15-100bps, the maximum increase being for bulk deposits

Major private lenders such as HDFC Bank, ICICI, Axis revise rates; deposit rates now catching up with RBI rate hikes

Lower GDP growth, RBI rate hikes, reversal of base effect to blunt credit growth, analysts say

Credit rose by Rs 0.43 trillion to Rs 129.26 trillion and deposits grew by Rs 1.7 trillion to Rs 173.7 trillion in the reporting fortnight

Bank deposits rose Rs 1.69 trillion to Rs 173.70 trillion in the two weeks to Nov 4