Deposit Growth News
Heartburn at lenders as loan rates fall but deposit rates don't
Floating-rate loans are repriced immediately, while deposit rates are fixed, squeezing margins, public sector bank chiefs told RBI officials ahead of the 5 December policy outcome.
4 min read3 Dec 2025After a year’s pause, AT-1 bonds make a comeback with Canara Bank
Canara Bank’s ₹3,500 crore AT-1 issue is set to reopen the perpetual bond market, prompting other state-run lenders to prepare their own capital raises.
4 min read1 Dec 2025Banks cut government debt holdings to increase advances as deposit growth slows
Deposit growth has fallen below the double-digit threshold for four consecutive fortnights.
4 min read3 Nov 2025Union Bank of India: Value investors may still find appeal despite slacking growth
Notwithstanding the soft June quarter update, Union Bank of India, like other top PSU banks, remains a deep value stock.
3 min read10 Jul 2025Complacency alert: The recent shortfall in deposits is a wake-up call for Indian banks
They should treat depositors as business partners if they are to garner sufficient low-cost deposits for lending. Financial repression is not sustainable and could structurally warp the Indian banking system.
4 min read30 Dec 2024Deposits won’t grow faster; it is time for credit growth to slow down
In line with the ‘withdrawal of liquidity’ stance, RBI has been constraining deposit growth by maintaining a lower level of banking system liquidity and moderating reserve money growth at around 5%.
3 min read5 Sep 2024Correction in markets over time could help some deposits return to banks: SBI MD Tewari
State Bank of India is now also focussing on granular, small-ticket deposits to aid deposit growth.
2 min read28 Aug 2024Growth in bank deposits has been slow because RBI wants it to be slow
The RBI’s deliberate strategy to tighten money supply is slowing down bank deposit growth, challenging the conventional wisdom that deposits fund loans. While this approach aims to control inflation, it raises questions about the broader implications for the banking system's stability.
18 min read28 Aug 2024‘Statistical Myth’: SBI report allays concerns over declining bank deposits; robust growth seen in deposits, credit
State Bank of India says the concern about a slowdown in deposit growth in the banking sector is just a statistical myth. Deposit growth remains strong, with term deposits taking a larger share as interest rates rise, the lender has said in a report.
2 min read19 Aug 2024Credit growth cools as banks come to terms with the new normal
A war for deposits among banks is finally giving way to a realisation that they may have to adjust to a shift in savings habits among customers in favour of higher-yielding investments.
5 min read1 Aug 2024Popular Topics
Budget
The Union Budget contains details about the estimated receipts and the expenditure of the government for a particular fiscal year. The Budget is allotted for the upcoming fiscal year, which runs from 1st April to 31st March of the next year. Here is a quick guide on how the Union Budget is prepared
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