Few selected indicators are quite illustrative of the situation: Of the 156 million people, the number of deposit holder as per Statistical Bulletin is 26,321,688 which also include multiple accounts by same persons/entities. For a country with a population of approximately 156 million these numbers are abysmally low since it only accounts for less than 17 percent of total population.
Enhancement in deposit mobilization and in particular promoting long term resource mobilization – this will require banks to raise deposit rates to stimulate low savings rate which have been partly hurt by low returns and partly by high propensity to consumption. Equally important are steps being taken by central bank to stretch maturity of deposit by charging lower reserve ratio’s for long dated deposits.