Total household savings inch up to 7.2% of GDP
The household financial savings rates inched up a paltry 10 basis points to 7.2 per cent of GDP in 2013-14. Savings in deposits by households rose, however, to Rs 1 trillion (17 per cent) in the year to Rs 6.91 trillion in FY14 against Rs 5.91 trillion in 2012-13.
They constituted about 59 per cent of the gross financial savings, of which about 53 per cent constituted bank deposits. Savings in shares and debentures dropped 22 per cent to Rs 33,700 crore in FY14, from Rs 43,000 in the previous fiscal, according to a RBI report.
Savings by individuals in MFs (through shares and debentures) saw a 40 per cent drop to Rs 21,000 crore in the reporting year from Rs 35,000 crore, while savings in currency declined 9 per cent to Rs 1.02 trillion from Rs 1.12 trillion.