Since October, the ongoing decline in the stock market has resulted in investors losing Rs 47 lakh crore in wealth. On September 27, the total market capitalization of companies in the market was Rs 477.90 lakh crore, which has now reduced to Rs 430.60 lakh crore. Increasing uncertainty and apprehension in the market have driven investors back to banks. According to data released by the RBI, deposits in banks surged to Rs2.35 lakh crore in the second fortnight of October. Before the Sensex hit a record high, total bank deposits in the second fortnight of August were around Rs 215.50 lakh crore. In the first fortnight of September, there was a decline of Rs 45,000 crore in total bank deposits. By the end of September, a phase of market decline began, during which bank deposits started to rise. In October, total deposits in banks reached Rs219 lakh crore. Thus, in the face of uncertain market risks, Indian banks are perceived as a safe haven by investors. For investors affected by market risks, bank deposits are proving to be a reliable support.
