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Bank Deposits increased to Rs 200 lakh crore: RBI Report


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In 2023, banks concluded the year with deposits surpassing the Rs 200-lakh-crore milestone, marking a significant achievement. The banking sector experienced a doubling of total deposits from Rs 100 lakh crore in September 2016, indicating a compound annual growth rate of approximately 9.5%.

Although this represents the quickest addition of Rs 100 lakh crore to the deposit base, the growth rate has decelerated compared to previous periods.

As of December 29, according to RBI data, bank deposits reached Rs 200.8 lakh crore, reflecting a 13.2% increase from the corresponding period in the previous year. Term deposits constituted Rs 176 lakh crore, with the remainder in current and savings accounts. Concurrently, bank advances amounted to Rs 159.6 lakh crore, marking a 20% rise from December 2022 levels.

Recent years have seen a notable shift in household savings towards mutual funds. In 2023, the mutual fund industry witnessed a record addition of Rs 10 lakh crore to its total assets under management, surpassing the Rs 50-lakh mark—equivalent to a quarter of total bank deposits. In 2003, when bank deposits were at Rs 12.6 lakh crore, mutual funds had an AUM of only Rs 1.2 lakh crore.

The growth trajectory of bank deposits has been remarkable over the years. Commencing at Rs 5.1 lakh crore in 1997, deposits doubled to Rs 10 lakh crore by June 2001, followed by another doubling to Rs 20 lakh crore by March 2006. The most rapid doubling occurred between March 2006 and July 2009, propelling deposits to Rs 40 lakh crore.

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