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The share of term deposits bearing less than 6 per cent interest rate came down. In comparison, the percentage of term deposits bearing 6 to 8 per cent interest rate went up even as return on bank deposits rose significantly during Q1 (April-June):2023-24.
The share of term deposits bearing less than a 6 per cent interest rate came down to 25 per cent of the total term deposits in June 2023 from 38.7 per cent a quarter ago, per RBI data.
On the other hand, the share of the term deposits bearing a 6 to 8 per cent interest rate went up from 57.8 per cent to 70.7 per cent during the same quarter.
Term deposit rates of over one year tenor were fetching 6.00/7.25 interest on an average as of June 30, 2023, against 5.00/5.75 as of July 1, 2022.
Nearly two-thirds of term deposits were placed in the original maturity bucket of one to three years; around 20 per cent of term deposits were short-term (less than a year), according to RBI’s quarterly basic statistical return.
Current savings and term deposits had 9.6 per cent, 31.8 per cent, and 58.6 per cent shares in bank deposits in June 2023.
The household sector (includes individuals, proprietary concerns, Hindu undivided families (HUFs) and partnership firmsy, among others) held the largest share of bank deposits (61.0 per cent). Senior citizens and minors held 19.8 per cent and 0.6 per cent of the total deposits, respectively, in June 2023.
Maharashtra, NCT of Delhi and Gujarat accounted for over half of the incremental deposits during April-June 2023.
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