Deposit growth lags credit in March quarter

Deposit growth of banks continued to trail credit growth in the March quarter, according to the provisional numbers submitted to exchanges. South Indian Bank, Central Bank of India, Punjab & Sind Bank on Tuesday reported year-on-year deposit growth ranging between 5.5-8.7%, while their credit grew at a faster clip of around 10-16%.

All three banks also reported a fall in the share of CASA ratio (current account, savings account) in the total liabilities. This is in line with industry where the low-cost CASA deposits have grown slower compared to fixed deposits. But Punjab National Bank‘s domestic deposit and credit grew at around 13% on year.