Higher CASA pushes bank deposits up 12% in FY21

Mumbai: Bank deposits grew 11.9 per cent year-on-year during 2020-21 compared to 8.8 per cent in 2019-20 on the back of high growth in current account and savings account (CASA) deposits, RBI data showed.

The share of CASA deposits increased to 43.7 per cent in March 2021 compared to 41.7 per cent a year ago, according to the Reserve Bank of India (RBI's) Deposits with Scheduled Commercial Banks - March 2021 data released on Thursday. Among institutional categories, the household sector held 64.1 per cent share in total deposits. Individuals, including Hindu Undivided Families (HUFs), were the major constituent of the household sector and contributed 55.8 per cent in aggregate deposits, the data showed.

Bank deposits of non-financial corporations surged by 18.8 per cent during 2020-21 and their share in total deposits increased to 16.2 per cent in March 2021. Metropolitan branches of banks, which account for over half of total deposits, accounted for 59.6 per cent of incremental deposits during 2020-21 as against 43.2 per cent in the previous year. Three major states -- Maharashtra, UP and Karnataka -- held one-third of total household sector's outstanding deposits and over 40 per cent of its incremental deposits during 2020-21, the data showed.