CONNECT WITH US
Fintech

Fintech

Bank deposits grow nearly five times faster than accounts as balances deepen

ET BFSI Fintech logo

Published on

Add as a preferred source on Google
Bank deposits grow nearly five times faster than accounts as balances deepen

Bank deposits grow nearly five times faster than accounts as balances deepen

Individual bank deposits rose 9.7% YoY to Rs 134.8 trillion in FY26, far outpacing the 1.8% growth in bank accounts and lifting average deposits per account 7.7% to Rs 51,494.

The divergence indicates that financialisation is increasingly coming from larger balances within existing bank accounts, rather than only from the opening of new accounts. Women are driving banking deepening, with deposits growing at a 13.4% CAGR and accounts at 8.5% between FY19 and FY26, versus 7.5% and 3.1% for men. Financialisation is extending into market-linked assets, with demat accounts rising 17.6% to 225 million and mutual fund folios growing 16.8% to 274 million in FY26. India still has significant headroom, with demat penetration at 13.1% of the population and MF AUM at 19.6% of GDP, well below comparable markets such as China, Japan, the UK and US.

Individual bank deposits grew nearly five times faster than the number of bank accounts in FY26, pointing to a deepening of household savings within the banking system rather than financialisation being driven only by the opening of new accounts. 6 billion. 7% from the previous year, according to a JM Financial report. The gap between account and deposit growth indicates that financialisation is increasingly being reflected in larger balances within existing accounts, it said. The trend suggests that the deepening of India's banking system is increasingly coming from higher deposits held within existing banking relationships, rather than simply from growth in the number of accounts.


Source link
Related Topics:Fintech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.