Indian Banking Sector - SCBs’ Current Account, Savings Account Mobilisation Pace Improves: Systematix

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.The Indian banking system witnessed an expansion of 3.7% QoQ and 15.2% YoY in low-cost deposit (current account and savings account) in the September 2021-end quarter post a cyclical moderation in the June 2021- end quarter (flat QoQ). Since the onset of the Covid-19 pandemic (end-March 2020), the banking system’s CASA compositions have improved by 18 basis points and 203 bps to 9.4% and 34.9%, respectively, and the average total deposit mobilisation growth has been 10.8%. Several factors are in play: households and corporates (private and public sector undertaking entities) continue to save more and spend less; money-multiplier on the broad money was at 5.56 times in the pre-pandemic months (January-February 2020), sliding to 5.1 times in May 2021 and picking up gradually to 5.3 times at end-September and end-Oct-21. Lower money-multiplier would adversely impact savings account deposits and total deposit mobilisation; diversion of household and institutional savings to mutual funds has led to moderation in deposit mobilisation..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Indian Banking Sector - SCBs’ Current Account, Savings Account Mobilisation Pace Improves: Systematix

Indian Banking Sector - SCBs’ Current Account, Savings Account Mobilisation Pace Improves: Systematix

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