Total deposits with cooperative & public-sector banks in Kerala decline

KSCB’s share of total bank deposits dipped, too. Its March 2021 deposits were nearly 10% of total bank deposits in the state, at Rs 6.77 lakh crore. This fell 9.4% in March 2022 and 8.7% in 2023 YoY.
Image used for representational purpose only. (Express IIlustration)
Image used for representational purpose only. (Express IIlustration)
Updated on
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THIRUVANANTHAPURAM:  Total deposits with cooperative and public-sector banks in the state declined in 2023, while private-sector banks and small-finance banks reported double-digit growth, showed data from the State Level Bankers’ Committee (SLBC).

SLBC’s banking statistics for the quarter ending March 2023 showed that deposits with the Kerala State Cooperative Bank (KSCB or Kerala Bank) declined 1.02% year-on-year (YoY), from Rs 69,983.47 crore to Rs 69,271.70 crore. It had increased 4.87% from Rs 66,731.60 crore in March 2021 to Rs 69,983.47 crore in March 2022. However, the credit-deposit (CD) ratio of the bank rose 2.44% in 2023.

KSCB’s share of total bank deposits dipped, too. Its March 2021 deposits were nearly 10% of total bank deposits in the state, at Rs 6.77 lakh crore. This fell 9.4% in March 2022 and 8.7% in 2023 YoY. Total deposits in all cooperative banks stood at Rs 74,699.60 crore in March 2023, which inched down 0.28% from Rs 74,902.25 crore in March 2022. These include KSCB, Malappuram District Cooperative Bank, Kerala State Cooperative Agricultural and Rural Development Bank (KSCARDB) and Primary Cooperative Agriculture and Rural Development Banks (PCARDBs). 

Total deposits in the cooperative sector recorded a 5.2% growth in the previous year. Malappuram DCB however bucked the trend by recording 10.79% and 10.47% growth in 2022 and 2023 respectively. It’s merger with KSCB is yet to be completed and SLBC counted it separately.

The twelve public sector commercial banks in the state posted a 5% YoY growth in total deposits, as against the previous year’s 9.18% rise. Public sector banks’ share in total deposits showed a steady decline, from 46.49% in March 2021 to 45.49% in March 2023.  

The 20 private sector commercial banks together registered an impressive 10.78% YoY growth in deposits – from Rs 2.91 lakh crore in March 2022 to Rs 3.23 lakh crore at the end of March 2023. The sector’s deposit growth rate was 10.22% last year. The share of private sector commercial banks in total deposits grew from 39.01% in March 2021 to 40.61% this year.

Small finance banks (SFBs), relatively new entrants to the state’s banking sector, have had phenomenal growth over the past few years. The YoY growth rate was 19.69% in March 2023 and 31.89% in March 2022 – the highest among all categories. Total deposits in SFBs grew from Rs 8,695.90 crore in 2021 to Rs 13,727.67 crore in 2023. Their share in total deposits increased from 1.28% to 1.73% over three years.

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