Bank Deposits Double In Over 7 Years, Suggests Data

The conclusion of 2023 marked a significant achievement for commercial banks as deposits surpassed the Rs 200 trillion milestone, doubling from Rs 100 trillion in September 2016 over a span of seven years and three months. Notably, the last Rs 50 trillion were mobilised within a record two years and nine months.

During this period, mutual fund Assets Under Management (AUM), constituting one-fourth of total bank deposits, witnessed growth of approximately Rs 20 trillion. The robust credit offtake following the Covid period prompted banks to attract more funds by offering higher interest rates on term deposits. This acceleration in deposit mobilisation entered double digits in 2022 and 2023.

Two pivotal events contributing to the expansion of the deposit base were the demonetisation of Rs 500 and Rs 1,000 notes in 2016 and the return of Rs 2,000 notes to banks in 2023.