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Small businesses are struggling more than the salaried as seen from current accounts versus savings accounts trends.
According to a report by Kotak Institutional Equities, the ownership data for deposits shows that deposit outflow seen by a few private banks in 4QFY20 has probably reflected in slower market share loss for PSUs with private banks losing market share in government deposits.
Private banks continue to do well especially on household deposits while foreign banks gained current accounts share for the third year in a row.
“Small businesses are likely struggling more than salaried as seen from current account versus savings account growth trends,” the report said.
The report highlights the variance in household current and saving deposit growth is a sign of dichotomy. Dissecting the current account deposit growth shows headline growth is driven by corporates whereas the household sector (i.e. SME) with a 35 percent share declined 2 percent year on year. In contrast, household savings deposits (82 percent of overall savings accounts) grew 10 percent year on year compared to 9 percent in FY2018-19, reflecting a steady rise in savings, a trend reflected in household term deposit growth (10 percent year on year) as well.
Government sector deposit growth comprising of central, state, and local governments has slowed considerably to -1 percent and -3 percent in FY2020 and FY2019 after growing at 9 percent and 30 percent in FY2018 and FY2017.
The slowdown is largely driven by term deposits whereas current and saving deposit growth has been flattish. As a result, the share of government deposits is at a multi-year low of 8 percent (vs 10.5 percent in FY2018). Further, private banks lost market share in FY2020, after four years of gain. On their small base, SFBs have maintained market share.
The key insights from RBI’s ownership of deposits report show that Overall deposits grew 9% YoY (vs 10 percent YoY in FY2019), driven by current account deposits growing by 8 percent YoY and savings deposits by 10 percent YoY, while term deposits grew 8 percent YoY.
CASA ratio improved marginally YoY to 41.7 percent with the share of savings deposits at a decade high of 32 percent. The contribution from households was stable at 63 percent, the government sector declined to 12 percent while the private sector improved to 11 percent. The regional distribution shows a marginal loss for metro/urban areas.
Private banks continue to chip away retail deposits but lose share in current accounts. Private banks continued to gain market share in household deposits (albeit slower pace) to 24 percent with significant headroom to grow as PSU banks still maintain a 70 percent share.
The pace of CASA market share shift away from PSU banks declined with private banks gaining a small share but relatively bigger gains for foreign banks (~50bps vs 20bps YoY).
At the margin, the share loss was contained in both current and savings account, with private banks losing share in CA and gaining in SA while foreign banks gaining CA share for the third year in a row.
Small Finance Banks have started to make some inroads. They have gained market share, especially in the finance segment (4 percent market share) leading to contribution from this segment at elevated levels at 37 percent compared to 48 percent for households.
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Compared to the earlier strong deposit growth in central and eastern regions of India, there is a relatively more even household deposit growth across regions. Metro and urban centers control 75 percent of deposit market share over the past five years, possibly reflecting challenges in rural/semi-urban focused deposit strategy, the report said. (IANS)
Amitabh Bachchan is adored by the public for his unforgettable on-screen performances as well as his magnetic demeanour. Not only do fans love Amitabh Bachchan's outstanding performance, but the actor's heartwarming words are also highly regarded. A much moved Amitabh Bachchan, during his speech to the crowd of over 80,000 people at the Reliance Industries' annual event, said that the legacy left by Dhirubhai has had a positive impact on millions of people's lives worldwide.
When Bollywood superstar Amitabh Bachchan became bankrupt in the late 1990s, Dhirubhai Ambani stepped forward to give him financial assistance. In his speech, Bachchan remembered that Dhirubhai had sent Anil Ambani to offer him financial assistance during the crisis, which he had respectfully declined. Lenders began knocking on his door, losses mounted, and his bank account dwindled to nothing. He said, "Dhirubhai's money might have gotten me out of the problem quickly. However, I respectfully declined his offer and gradually began to find work again, which let me pay off my debt."
Amitabh Bachchan is adored by the public for his unforgettable on-screen performances as well as his magnetic demeanour. | Flickr
Later, after Bachchan had recovered from the bankruptcy, one day he was invited to an event at Dhirubhai's residence; Bachchan added, "Dhirubhai was standing and having a chat with his industrialist friends when he saw me there, he called me, firstly I felt shy even to present myself in front of such big industrialists but then, I went there, and Dhirubhai declared in front of all of them that 'This young man had fallen but managed to get back up on his own, I have a lot of respect for him because of that.' Those words of his were worth much more to me than any amount of money that he could have offered me."
It was the "Reliance Family Day" event and was attended by members of the Ambani family from all generations. The event commemorated the company's 40-year journey since its inception. It also celebrated the 85th birthday of the late Dhirubhai Ambani, RILs (Reliance Industries Limited) founder.
Keywords: Bollywood, Reliance, Amitabh Bachchan, Dhirubhai Ambani, event
In comparison to adults, children are prone to getting traumatized by troubling events easily, and this makes it important for parents to help their children when the times are tough. It could be a brutal accident, an unprecedented pandemic, a violent crime, or other disasters but with the right parental support, children have a higher chance of coming out stronger from an awful situation.
Anuja Kapur, Psychologist shares few tips wherein you can assist your child when tough times comes calling:
Every child responds differently to disturbing events: What children feel about a current disaster in their life and how they react to it can come and go in waves. Children can act moody and withdrawn at times, struck with sorrow and fear at other times. There's no absolute "right" or "wrong" way to feel after a traumatic event so make sure not to dictate what your child or how your child should feel and react to the event.
Children can act moody and withdrawn at times, struck with sorrow and fear at other times. | Photo by Kat J on Unsplash
Encourage your child to be transparent: Just make sure you let your child know that whatever feelings they're experiencing is normal. The unpleasantness will pass if your child opens up about it and that the phase is temporary. While many teens may be reluctant to talk about their feelings with a parent, encourage them to confide in another trusted adult such as a family friend, relative, or a counselor and teacher. It's important to talkeeven if it's not with you.
Just make sure you let your child know that whatever feelings they're experiencing is normal. | Photo by Sebastián León Prado on Unsplash
Deter your child from reliving the disturbing event: Dwelling over, watching the footage, or imagining the event can be overwhelmingly stressful for children and this stress can even block their nervous system. However, to negate such things from happening encourage activities that keep your child's mind occupied so they're not obsessive about the event. You could encourage your children to read, play games together, or simply watch an uplifting movie.
Dwelling over, watching the footage, or imagining the event can be overwhelmingly stressful for children and this stress can even block their nervous system. | Photo by Юлія Дубина on Unsplash
Cocoon your child with warmth: In order to reassure your child that they are safe with you and feel secure, that the worst is over your physical affection is important in making them feel safe again. Teens may try to be tough through it and avoid being held, but they still need the proximity.
In order to reassure your child that they are safe with you and feel secure, that the worst is over your physical affection is important in making them feel safe again. | Photo by adrianna geo on Unsplash
Maintain routines. Establishing a predictable structure and schedule for your child's life can help to make the world seem more stable again. Try to maintain regular times for meals, homework, and family activities. Make sure your child accommodates time and space for rest, play, and fun. Keeping up with a schedule can help countercheck the obnoxious feeling of stress and worry in children about the future being dark, hopeless, and unpredictable.
Try to maintain regular times for meals, homework, and family activities. | Photo by Paico Oficial on Unsplash
Acknowledge and validate your child's concerns. The disastrous events in life may give place to unrelated fright and concerns in your child. However, understanding and accepting your child's present state is a comfort for the child. If at any point the child blames himself for the event make sure to make it clear and crisp the event was not their fault, you love them, and it's okay for them to feel upset, angry, or scared but not guilty.
Understanding and accepting your child's present state is a comfort for the child Photo by Jeremiah Lawrence on Unsplash
Irrespective of the age of your child, it is vital for parents to offer that extra support and assistance following an unsettling event. The traumatic event may bring up unrelated fears and issues in your child. However, by accepting their thoughts and replacing their fear with your love and direction, the ominous feelings will start to fade away. Eventually, the child will be able to return to a normal and healthy life. (IANS/ MBI)
Keywords: Kids, Help, stress, cope, routine, warmth, understanding, encourage, psychology, children
The European Commission, the executive arm of the European Union (EU), has announced plans for smartphone and other electronics manufacturers to fit a common USB-C charging port on their devices in an effort to reduce waste. In addition to phones, the rules will apply to other devices like tablets, headphones, portable speakers, videogame consoles, and cameras, reports The Verge. The decision will have a huge impact on Apple, as the company still uses its own Lightning connector to charge iPhones. The proposals only cover devices using wired, not wireless and a USB-C port is only mandatory for devices that charge using a cable.
"Chargers power all our most essential electronic devices | Photo by Solen Feyissa on Unsplash
"Chargers power all our most essential electronic devices. With more and more devices, more and more chargers are sold that are not interchangeable or not necessary. We are putting an end to that," the report quoted EU commissioner Thierry Breton as saying.
The Commission also wants to unbundle the sale of chargers from the sale of electronic devices, which it says will improve the consumers' convenience. "With our proposal, European consumers will be able to use a single charger for all their portable electronics - an important step to increase convenience and reduce waste." In addition, the Commission will require manufacturers to provide relevant information about charging performance. (IANS/MBI)
Keywords: Electronic Devices, Chargers, Cable, smartphone, Adapters, Charging Cord