Irish deposits rose in March despite Cyprus fears

DUBLIN (Reuters) - Deposits held by Ireland's domestically-owned banks rose by 0.6 percent in March, data from the country's finance department showed on Wednesday, indicating no knock-on effects from the tax on savers imposed under Cyprus' bailout last month.

Deposits at Bank of Ireland <BKIR.I>, permanent tsb <IPM.I> and Allied Irish Banks Group <ALBK.I> rose by 0.9 billion euros (773.31 million pounds) to 155.6 billion euros due to strong retail inflows, the department said.

A large outflow of deposits before Ireland's bailout left the banks dependent on the ECB for funding but that reliance has fallen steadily over the past two years and dropped a further 10 percent to 39.6 billion euros in March.

(Reporting by Padraic Halpin)