During the fourth quarter of FY 2019-20, the growth in total deposits in the bank has suffered a big fall. In the era of Corona, where the savings of people could only support their expenses due to reduced income, that too is now stuck in other investments. In such a situation, the economic conditions are going to be very challenging in the coming months.
According to the data released by the National Statistics Office, there has been a decline of more than 50 per cent in the total deposits growth in banks in the January-March quarter. This minus has reached 53 per cent, while it had seen a growth of 9.7 per cent during the last quarter ie October to December. At the same time, it saw a growth of 67.1% in the fourth quarter of the financial year 2018-19. Talking about the entire financial year, the growth in deposits has come down to about 8 percent in this financial year as compared to 10 percent in the last financial year.
Pranav Sen, former chief statistician of the Union Ministry of Statistics and Program Implementation, said in a conversation with Hindustan that there has been a big reduction in deposit growth. According to him, investment in mutual funds had increased considerably in the fourth quarter of the financial year, so it is possible that people have withdrawn deposits from the bank and invested in mutual funds.
Money invested in mutual funds due to reduced interest rates
Pranab Sen also said that interest rates on bank deposits have also been declining for the past 1 year, so people started saving savings deposited in the bank in mutual funds. The overall savings in the hands of the people have decreased at the moment due to the fall in the stock market after Corona. As a result of this, people who could balance the loss of income with their capital deposited in the bank during the Corona era have also completely deteriorated.
Improvement will happen in the coming days
He also hoped that as the situation improves, people will move out of volatile investments in the coming days and return to banks. Signs of this have started.