Bank Deposits News
Banks target to clear 30-40% unclaimed deposit in FY26
The Centre is likely to ask PSBs to identify geographical areas with the most unclaimed deposits, set quarterly settlement targets at the branch level, and develop a standard operating procedure (SoP) to achieve the target
2 min read24 Apr 2025Is India's bank deposit insurance adequate? A reality check
India’s deposit insurance scheme offers wide coverage by number, but not by value—leaving large depositors at risk. With household savings rising, is the RBI’s safety net still fit for purpose?
3 min read22 Apr 2025Budget 2025: Lenders seek support to mobilise retail deposits, boost consumption
While Indian banks have improved capital adequacy and asset quality, deposit growth remains a challenge. Experts suggest incentives for retail deposits and a focus on consumption to boost liquidity, alongside a push for financial sector growth to align with the Viksit Bharat vision.
2 min read27 Jan 2025Banks added over ₹2 trillion more in deposits than loans in 2024
When seen on a full-year basis, higher fresh deposits compared to loans in 2024 has pushed the incremental CD ratio to 89.5%, as against 94% in 2023. The CD ratio indicates how much of a bank’s deposit base is being utilized for loans.
4 min read15 Jan 2025Indira Rajaraman: It pays to track popular perceptions of public policy
Public policy needs to be viewed from the lens of those it’s ostensibly designed to serve: the people. Research shows only a few items form their view of inflation, for example, but which?
4 min read2 Jan 2025Complacency alert: The recent shortfall in deposits is a wake-up call for Indian banks
They should treat depositors as business partners if they are to garner sufficient low-cost deposits for lending. Financial repression is not sustainable and could structurally warp the Indian banking system.
4 min read30 Dec 2024PSU banks are giving the best FD rates in eight years. Here's why
In September, the weighted average domestic term deposit rate for public sector banks (PSBs) touched 7%, the first time since March 2017
4 min read6 Nov 2024The anatomy of falling bank deposits—and how to arrest it
The sharp decline in bank deposits signals shifts in customer behaviour, driven by changing saving habits and alternative investments. Reversing this trend will require banks to innovate deposit products and enhance customer engagement.
3 min read26 Sep 2024Vivek Kaul: Stock market mania and the shrinking case of household deposits
As banks face an asset-liability mismatch, data reveal a concerning trend: individuals are shifting their savings to riskier investments. With RBI’s monetary policy influencing this shift, what does it mean for the future of banking in India?
16 min read25 Sep 2024Banks get innovative to beat ongoing deposit crunch
Lenders are not just competing with one other but also equities, mutual funds and insurance products that have been drawing household savings.
5 min read24 Sep 2024Popular Topics
Budget
The Union Budget contains details about the estimated receipts and the expenditure of the government for a particular fiscal year. The Budget is allotted for the upcoming fiscal year, which runs from 1st April to 31st March of the next year. Here is a quick guide on how the Union Budget is prepared