Ahmedabad: Capital expenses that are jammed and the habit of saving money because the pandemic has led more people to deposit money in the bank and keep their savings intact, causing bank deposits to soar.
According to the latest report by the State Level Banker Committee (SLBC), Bank deposits in Gujarat jumped 12.5% ​​in the June 2021-22 quarter against the appropriate quarter 2020-21.
Bank deposits in Gujarat stand at RS 8.84 Lakh Crore in the first quarter of 2021-22, up from Rs 7.85 Lakh Crore in the appropriate quarter.
Explain the reason for the surge in bank deposits, MM Bansal, SLBC-Gujarat organizers, said that “post-covid pandemic, industry planning for expansion or fresh capital expenditure stopped their plans and the trend continued until the first quarter.
The new project has not taken off.
Meanwhile, Since the pandemic and mainly because of the second wave, people made provisions for emergency medical expenses as a savings.
As a consequence, bank deposits showed a neat growth.
“Bankers also mentioned that awareness of investment into other asset classes such as the stock market, mutual funds and gold relatively lacking And the masses always prefer to maintain their money security at the bank.
The private sector bank showed the highest growth in deposits at Rs 47,327 Crore during the period.
According to SLBC reports, private bank deposits jumped from Rs 2.18 lakh Crore in the June 2020-21 quarter to Rs 2.65 lakh crore at 2021-22.
The stock market benefits ordered by profit is also being stored in banks and people generally spend less because bank deposits are growing.
“Since Covid Pandemics, people consciously focused on savings, specifically savings in banks with accessible liquidity ease, must be needed in an emergency.
Furthermore, the stock market has performed well, leading people to order their profits and park it in deposits Bank, “said Thomson Jose, Branch Banking Head – Gujarat, HDFC Bank.