Determinants of Bank Deposits -- A Study with Special Focus on Bank Ownership.

This study examines the determinants of bank deposits with special focus on bank ownership. The study uses the data of 39 commercial banks of India for the period 2001-2020. System GMM is used to analyse the impact of various factors on the volume of bank deposits. The log of the aggregate deposits of a bank is used as a dependent variable in this study. Independent variables include lagged value of the dependent variable, average term deposit Rate, lagged value of NPA ratio, number of branches, ownership dummy and an interaction term between ownership dummy and bank size. Empirical results revealed that deposit rates and branches have insignificant impact on volume of bank deposits and lagged value of NPAs and ownership dummy have significant negative impact. However, the main finding of this study is that the size of the banks would influence the impact of ownership on the volume of deposits. [ABSTRACT FROM AUTHOR]