Small savings rise by Rs. 4.6 trillion

In February this year, small saving deposits stood at Rs. 9.9 trillion, which is only a small fraction of SCB deposits that totaled to Rs. 170.2trillion, as per a report by Bank of Baroda.

“In terms of incremental deposits as well, while deposits by SCB’s have increased by Rs. 55.4 lakh crores over the last 5 years, small saving deposits have only increased by Rs. 4.6 lakh crore,” the report, authored by economist Aditi Gupta, showed.

However, the silver lining is that the ratio of small savings term deposits to banking term deposits or the same for savings account deposits have been rising gradually but continuously over the last few years.

Data shows that the ratio of small savings deposits to bank deposits has inched up from 4.4% in FY17 to 5.8% in FY22. “While the share is still very low, the gradual rise is significant,” the report said.