Private banks regained the market share in the Casa (current account, savings account) deposit in FY13, a Kotak Institutional Securities report said on Thursday.
The report said that in FY14, the private banks gained 120 basis points in the Casa deposits, of which gains in savings accounts were 70 bps and that 260 bps in current account. Private banks had a 26.9% share of the current accounts and 18% share in savings deposits in FY13.
The brokerage noted that Casa ratio of both public and private sector banks fell across the country but the impact was higher on current account deposits than savings accounts. “On other hand, the duration of deposits, which has been declining in recent years, reversed marginally in FY13,” the report said.
The report said that the ownership of term deposits continued to favour corporates and group depositors since FY02. The ALM (asset liability management) profile, which had been consistently deteriorating with a decline in duration of deposits, improved marginally in FY13.
“Private banks have been expanding and gaining share in loans and deposits. Gains in FY13 came at the cost of regional rural banks (in rural areas) and foreign banks (in urban areas). The shares of SBI and nationalised banks have been broadly stable,” the report explained.
The report says that south India is the most competitive market and continues to do well on most operating metrics. The western region has gained in the current account segment. The dominance of the top 100 centres continued in FY13 as they represented a quarter of the overall branch network with 70% of the deposits and 80% of the overall loans.
“Central India (20% of total savings deposits) remains the last big market for private banks as their share in the region was the lowest, at 7%. SBI continues to do well with marginal gains in western and southern geographies”, the report added.