This decline is discernible across all bank groups, and especially for public sector banks in the post 2001 period consequent to the voluntary retirement scheme across several nationalised banks.
We can improve savings rates, especially through fiscal policy, but we are not going to be a high-saving economy for the foreseeable future. For this reason, we need to get to a position where we can safely and sustainably fund investment demand in excess of local savings. Instead of bemoaning a weak current account, we need to develop a strong capital account.