Business

IndusInd deposit base drops up to 11%

Bank attributes reduction to government-related accounts

IndusInd Bank has reported a reduction in deposits by up to 11% after the Yes Bank crisis..

In a call with analysts on Monday, the bank said the total deposit base is lower by 10-11%.

The bank said, while citing reasons for the drop, “Almost two-thirds of the reduction is on account of government-related accounts — this is largely related to the general private sector bank stance.

This will also result in a lower CASA ratio, but reduce our dependency on this category for deposits in future.”

The bank has also said there was some reduction in wholesale deposits, which could possibly be because of the fall in stock price.

Some private banks were seeing an erosion in deposit base after Yes Bank was put under a moratorium on March 5.

Deposits safe

The trend had continued even after the Reserve Bank of India clarified on several occasions in the last one month that deposits in Indian banks were safe.

The RBI had also urged the State governments not to transfer their deposits out of private sector banks and clarified that apprehensions about the safety of deposits in private lenders were highly misplaced.

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Printable version | Jun 5, 2020 5:46:52 AM | https://www.thehindu.com/business/indusind-deposit-base-drops-up-to-11/article31221535.ece

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