Bank FD Holders: Big update for those investing in FD, RBI made a big disclosure, In the wake of increasing interest rates set by the Reserve Bank of India (RBI) over the past year, fixed deposits (FDs) have emerged as a preferred investment option for many. A recent analysis of RBI data for the financial year 2022 sheds light on the banks that investors favor when it comes to stashing their hard-earned money. Surprisingly, the report reveals that a select few public sector and private sector banks command a staggering 76 percent of the total deposits, highlighting their prominence in the Indian banking landscape.
SBI: The Undisputed Giant
Topping the list of favored banks is the State Bank of India (SBI), boasting an impressive market share of 36 percent in the FD segment among public sector banks. In fact, 23 percent of long-duration FDs find their home in SBI accounts. This reaffirms SBI’s reputation as the go-to choice for millions of Indian investors.
HDFC: Leading the Private Sector Pack
When it comes to private sector banks, HDFC emerges as the clear leader. With a 28 percent market share in the FD segment, HDFC is second only to SBI in terms of total bank deposits. Investors appreciate HDFC’s diverse range of FD tenures, making it a popular choice among those looking for flexibility and reliability.
Canara Bank and Union Bank of India: Public Sector Contenders
After SBI, investors looking for stability and trustworthiness turn to Canara Bank and Union Bank of India. Together, these two banks account for 7 percent of total bank deposits across all durations. Canara Bank and Union Bank of India hold 12 percent and 11 percent market share, respectively, in the FD sector among public sector banks.
BOB National Bank: A Worthy Mention
Not to be overlooked is Bank of Baroda (BOB) National Bank, securing its spot among the top preferences. With a 6 percent share of total bank deposits across all durations, BOB National Bank appeals to those who value reliability and security in their FD investments.
ICICI Bank: Private Sector Rival to HDFC
Among private sector banks, ICICI Bank emerges as a strong contender, following closely behind HDFC. Investors have entrusted ICICI Bank with a 19 percent share of FDs in private banks. Its overall market share among private banks stands at 6 percent, a testament to its appeal among those seeking competitive FD options.
Axis Bank: A Steady Performer
Rounding out the top 10 list of banks preferred by investors for FDs is Axis Bank. With 5 percent of total bank deposits across all durations, Axis Bank has earned the trust of investors who seek consistent returns and a range of FD choices. Among private banks, Axis Bank enjoys a 15 percent share in FD deposits.
In conclusion, as interest rates continue to fluctuate, investors in India are placing their faith in a select group of banks. Public sector giants like SBI, Canara Bank, and Union Bank of India dominate the landscape, offering stability and security. Meanwhile, private sector stalwarts like HDFC, ICICI Bank, and Axis Bank provide competitive FD options, catering to a diverse range of investor needs. With these banks leading the way, the future of fixed deposits in India remains promising and secure.