According to the latest data and statistics released by the RBI, loans outpaced bank deposits by 3% this year, raising serious concerns on the choice of customers today. While loans of various categories like home loan, car loan, personal loan etc., grew by 11% this year, bank deposits increased by a mere 8%, which several bankers claim was due to various segments of the infrastructure sector and an increase in the loans offered to corporates.
On the other hand, the fall of deposit growth was directly connected with the low interest rates offered on them as compared to returns on small savings schemes. It has also led to banks increasing the interest rates on them for certain tenors, while offering a rate higher than small savings schemes, in order to attract and retain their customers.