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Rajesh Vadivelu

CEO, 5 months

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India’s smaller banks are fast losing their deposits to bigger rivals
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Corporate and institutional clients are losing their faith in India’s small- and mid-sized banks, triggering a flight of deposits to the perceived safety of bigger lenders.Mumbai-based RBL Bank, for instance, reported an 8% quarter-on-quarter (QoQ) drop in deposits to Rs57,874 crore ($7.7 billion) for the three months ended March 31. The withdrawals were mostly by state-owned entities, the lender said in a filing to stock exchanges on April 1.In the same period, Pune-based IndusInd Bank, a mid-sized lender, lost 2% of its total deposits of Rs2,02,027 crore, after a few state government entities made huge withdrawals. Overall, the bank’s deposit book shrank 7% QoQ in the March quarter, it informed the bourses.