Top 5 Banks With Highest Savings Deposits As A % Of Total Deposits

A lot of expectations have already been built around the expected rate cut by the RBI in its next policy meet slated on January 29, 2013. On this count, as well as due to the Q3FY13 results season, banks will be under the spotlight. There will be a greater focus on the banks that have higher savings deposits as a proportion of their total deposits. If, as per the market expectations, the RBI cuts the interest rates then such banks will be in a much better position when it comes to lending at competitive rates as they have a higher proportion of low cost deposits. It comes as no surprise that the top three among these banks are from the public sector, as they have a wider reach. Read on to learn more.

State Bank of India: The origins of State Bank of India go back to the first decade of the 19th century with the establishment of the Bank of Calcutta on June 2, 1806. A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (April 15, 1840) and the Bank of Madras (July 1, 1843) followed the Bank of Bengal. These 3 banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on January 27, 1921. The bank has come a long way since then, and currently operates through a network of 20193 branches, including 5096 branches of its 5 associate banks.

The bank has secured the top position, with a savings deposit of 35.37% as a percentage of its total deposits. The market capitalisation of the bank stands at Rs 168335 crore and in the last one year, the stock prices of the bank has seen a gain of 47.19%.

State Bank of Bikaner & Jaipur: The origin of State Bank of Bikaner and Jaipur dates back to the year 1943-44, when the Bank of Jaipur and the Bank of Bikaner came into existence. In 1960, both banks were incorporated as subsidiaries of State Bank of India and renamed as State Bank of Bikaner and State Bank of Jaipur respectively. On January 1, 1963, both banks were merged into one entity, viz. State Bank of Bikaner and Jaipur. Currently, the bank operates through 950 branches and 1082 ATMs.

This is another of the associate banks of State Bank of India. With a market capitalisation of more than Rs 3200 crore, its savings deposits as a percentage of the total deposit stand at 31.04%. In the last one year, the scrip has yielded returns of 40.07%.

Bank of Maharashtra: Bank of Maharashtra, a public sector bank, was founded in the year 1935. It commenced its operation from Pune in the year 1936. The bank was nationalised along with 13 other banks in the year 1969, and this year also marks its entry in Delhi, where it opened its first branch at Karolbagh. The total deposit of the bank crossed the Rs 1 crore mark in 1946. The deposits grew and crossed the Rs 100 crore mark in 1974. At present, the company operates through a network of 1638 branches.

The bank’s savings deposits as a percentage of total deposits stand at 30.28%. The market capitalisation stands at Rs 3687 crore and in last one year, the scrip has yielded returns of 46.02%.

HDFC Bank: Housing Development Finance Corporation (HDFC) was among the first entities to receive an 'in principle' approval from the RBI to set up a bank in the private sector, as part of the regulatory authority’s liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. It currently has a nationwide network of 2,620 branches and 10,469 ATMs across 1,454 Indian towns and cities.

The market capitalisation of the bank stands at Rs 158227 crore and the savings deposits as a percentage of the total deposits stand at 29.99%. The scrip has yielded returns of more than 46% in the last one year.

Jammu & Kashmir Bank: Jammu & Kashmir Bank was incorporated in 1938 and is headquartered in Srinagar, India. This is the only private sector bank designated as the RBI’s agent for banking business. It carries out the banking business of the Central government, besides collecting central taxes for the Central Board of Direct Taxes (CBDT). The bank is engaged in providing various banking products and services, primarily in India. It offers a range of deposit products and services, including savings bank deposits, term deposits and current accounts, as well as value added and gift cheque schemes. As of June 30, 2012, the company operated a network of 611 branches.

J&K Bank’s market capitalisation stands at Rs 6384 crore and its total savings deposits as a percentage of total deposits stand at 29.95%. In the last one year, the scrip has yielded returns of 85.13%, the highest in the list.