The ‘Report on the Trend and Progress of Banking in India for 2011-12’ reveals some interesting issues on the maturity profile of select liabilities/assets of different bank groups. A perusal of the accompanying Table indicates that 50 per cent (48.5 per cent as on March-end 2011) of deposits of all scheduled commercial banks (SCBs) have a maturity of up to one year as at the end of March 2012; in the case of foreign banks, it is 61.8 per cent (63.7 per cent as at end March 2011).
The report merely says that the share of CASA (current account and savings account) deposits declined during 2011-12 and formed one-third of the total deposits of SCBs. The maturity profile of loans and advances, on the other hand, shows that those having a maturity of more than one year constitute 64.1 per cent of the total advances as at the end of March 2012.
On the investments side, only 30.4 per cent has maturity of less than one year. While it is agreed that there cannot be a perfect matching of maturity profile of different assets and liabilities, perhaps this imbalance has necessitated/resulted in short-term borrowings of SCBs (up to one-year category) constituting 52.6 per cent of total borrowings.
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