Dynamics of Bank deposits

Dynamics of Bank Deposits: The Developing States in India, points out that there is ample scope for faster mobilization of deposits in the rural centres, where bank deposit is the only profitable savings instrument available. There is an enormous saving potential in the unbanked and underbanked areas, and this book emphasizes the fact that deposits thus mobilized can be deployed prudently in the same region, to raise income and attain faster economic growth. It then moves on to examine the behaviour of bank deposits and the factors influencing it in the developing states in India, with special reference to Orissa.

The data presented in this book is enriched by a comparative analysis of the growth of bank deposits in ten selected economically developed states, and in ten developing areas for the years 1973 and 1999. The economically developed states studied were Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Punjab, Tamil Nadu, West Bengal and the National Capital Region of Delhi, and the developing areas examined were Assam, Bihar, Himachal Pradesh, Jammu and Kashmir, Madhya Pradesh, Manipur, Meghalaya, Orissa, Rajasthan, and Uttar Pradesh.

The author maintains that there is a high degree of correlation between credit disbursement and bank deposit. The study also reveals a clear shift in the preferences of depositors from current deposit to savings and specially term depos its. It also points to the ample scope for faster mobilization of deposits in the rural centres, vindicating the Reserve Bank of India's monetary policy. The book ends on a positive note, by saying that it is the catalytic role of bank depos its in the development process which is the raison d'être of banks.

This book will be immensely useful to teachers and students of management courses in training institutes, bankers, researchers, and in courses of economics in universities.