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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.
Also Read: Should Brands Surrender to Cyberbullying?
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)
The Reformation in England is notorious for the religious impact it had on the countries of the world, and the current ongoing dispute among the various factions of Catholicism and Protestantism. Three Blind Mice, a rhyme that emerged in 1609, roughly a few years after the death of Queen Elizabeth I, is somewhat a dark reminder of the Dark Ages.
The Reformation began in England when King Henry VIII broke away from the Catholic church because he wanted to divorce his wife, to marry another woman who would bear him a male heir. His wife was a devout catholic and refused to give up her crown to another. The king decided to break away from the Papacy, from Rome, where the Catholic church reigned from. He created the Church of England, and put himself as the legal head. England broke into two factions based on religion, and after Henry's death, the country was plunged in war.
Henry's eldest daughter, Queen Mary I took the throne after her father, and propagated Catholicism, as taught by her mother. Henry's other daughter, through his second wife, Queen Elizabeth I embraced the Protestant faith. Queen Mary was always paranoid of losing her throne to Elizabeth, and she hated the Protestants because of what happened to her mother. She set about ruthlessly persecuting anyone who openly professed their faith, which led to her being known as 'Bloody Mary'.
Illustration of Christian protestants being burned at the stake Image source: wikimedia commons
History has recorded the death of three Bishops, Ridley, Lattimer, and Crammer, known as the Oxford martyrs. They were burned at stake for teaching the Protestant doctrine. The rhyme Three Blind Mice is believed to be an allegorical allusion to the incident of the bishops' execution. They are called 'blind' because of their refusal to recant their confession. Queen Mary is said to have "cut off their tales with a carving knife" and is referred to as a farmer's wife to lighten the scene for children; perhaps to also reduce the ruthlessness of the act.
Three blind mice. Three blind mice.
See how they run. See how they run.
They all ran after the farmer's wife,
Who cut off their tails with a carving knife,
Did you ever see such a sight in your life,
As three blind mice (Modern version of the rhyme, Wikipedia)
Three Blind Mice is sung widely in nurseries of the world by little children, often innocent of the true story behind it.
Keywords: Three Blind Mice, Nursery Rhymes, Reformation, Persecution, England, Queen Mary
The pandemic brought about a global boom of entrepreneurship in 2020. Thousands of small businesses launched in the UK last year, and many were very successful. Some businesses started as passion projects, while others aimed to fill a hole in the pandemic market. Services and products, like at-home workouts, popped up all over social media from new and exciting businesses. The pandemic left many Brits financially unstable and scared for the future of their career. Launching their own business gave them something to focus on again and a small amount of income.
The Financial Times reported that the number of registered companies in the UK increased by 30% in 2020. As the world returns to normal, it will be interesting to see how these new businesses approach the post-pandemic world.
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If you have just set up a new business, here are some essential marketing tips to get the ball rolling:
Exploit social media
Social media is one of the most effective marketing platforms available. You can connect with a global audience for free and market your product or service to them. Post consistently and use high-quality imaging to catch your audience's attention. Engage with potential customers by replying to direct messages, comments, shares and likes. Use a few platforms to maximise your exposure and create a strong brand identity.
You can connect with a global audience for free and market your product or service to them. | Photo by Alexander Shatov on Unsplash
Network as much as you can
Networking is a vital part of business, and you can do it on and offline. Use sites like LinkedIn to connect with fellow entrepreneurs and those in different industries. Reach out to them directly and ask about their company or role. You might be surprised by how much you can learn from one conversation. Once in-person events return, you should look to make the most out of meeting people in your industry. You might find brands to collaborate with or a mentor to learn from. Make sure to hand out your business cards at the event so people can get in touch with you in the future.
Networking is a vital part of business, and you can do it on and offline. | Photo by Chris Montgomery on Unsplash
Create a blog
You need to be an expert in your industry. Create a blog and share your journey of learning to be a business owner. You can share your expertise and why you started the company, which other entrepreneurs can read and learn from. Your knowledge and experience might be extremely helpful for those just starting out. Use a range of marketing techniques to launch your business into the next phase.
Use a range of marketing techniques to launch your business into the next phase. | Photo by Sincerely Media on Unsplash
(Disclaimer: This article is sponsored and include some commercial links)
One of Indias fast growing Direct To Consumer (DTC) beauty and personal care brands, MyGlamm, launches its national TVC around the message 'All Natural #NoNasties today with actress Shraddha Kapoor, who is also an investor in the brand.
Kapoor who has a great millennial and Gen Z connect introduces 'My SUPERFOODS Kajal' which has No Parabens, No Mineral Oils, No Nasties while still being long-lasting and smudge-free and made with the goodness of nature. This is followed by many girls trying applying the kajal with confidence and while highlighting the ingredients Avocado Oil, Goji Berries, Vitamin E and Sunflower Seed Oil.
Commenting on the campaign, Apratim Majumder, CMO, MyGlamm says "Women have been telling us about what they want from their beauty products for a while now. Wikimedia Commons
The brand focuses on creating quality products that are high efficacy made with all-natural and no chemicals in the formulae. his campaign follows the #TellMyGlammWhatYouWant campaign where women logged in to tell the company what they wanted from their beauty products. It aims to establish a beauty democracy by giving consumers the power to tell the brand what they want thus changing the entire experience of how women buy beauty products in India.
Commenting on the campaign, Apratim Majumder, CMO, MyGlamm says "Women have been telling us about what they want from their beauty products for a while now. We have been innovating to serve those needs with products. When they told us that they want a kajal that is not only long-lasting and smudge-proof but also takes care of their eyes, we knew we had to do this. The campaign is about telling everyone out there who told us they need a kajal that cares, MyGlamm Superfoods Kajal is here for you! The campaign debued on MyGlamm's social channels- YouTube & Instagram on September 16. (IANS/ MBI)
Keywords: India, Direct beauty brands, My Glamm national, girls, kajal, confidence ingredients, Avocado Oil, Shraddha Kapoor