The outstanding balance per deposit account in India has risen by ₹7,014 on year to ₹91,472 in September 2024, primarily as customers invested more funds in higher yielding term deposits than savings deposit account, a research report released by SBI said. 

“The increase was primarily due to increase in per account term deposits by whopping ₹46,728 in one year as term deposits offered more attractive return. Term deposits also outpaced the growth in CASA deposits, and their share in total deposits rose to 61.4 per cent in September 2024 from 59.8 per cent a year ago,” the report said. 

Lower yielding savings account outstanding deposits, meanwhile, remained almost flat, at ₹32,485 each account in September 2024 from a year ago period. 

CD ratio

According to the report, region wise credit-deposit (CD) ratio indicates that except south and western region, CD ratio of all others  regions are below the national level of 79.9 per cent.  Interestingly, some states like Andra Pradesh, Telangana, Tamil Nadu and Maharashtra have crossed 100 per cent CD ratio, which may be due to concentration of corporate credit in these states. 

However, in many states like Jharkhand, Arunachal Pradesh, Himachal Pradesh and Goa, CD ratio is below 40 per cent. The report said the government should consider these states in opening industries, including small and medium enterprises, which will increase employment opportunities

Lastly, the report said that credit growth has slowed down across sectors and going by the current trends, both deposits and credit may grow in the range of 11-12 per cent during FY25.

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