Deposit Growth

Deposit growth has decelerated in Q2 for banks.

Mi CASA, Su CASA: The shifting tides of deposits among banks

Low urban wage growth has been one of the structural drags on deposit growth, especially CASA.

Private banks beat PSBs on deposit growth in Q1FY26, per provisional data

Nonetheless, tepid growth in current and savings account deposits has sustained in the April-June quarter.

Banks Q1 earning preview| PAT to remain under pressure amid margin pressure

There has been greater pressure on banks' NIMs due to a downward repricing of External Benchmark Lending Rates amid front loading of rate cuts by the Reserve Bank of India in the last three monetary policies

Banks continue to battle with slow growth in CASA deposit in June quarter, show provisional numbers

In the last few quarters, banks have been struggling with deposit mobilisation, especially on the CASA front, due to unattractive interest rates for depositors as other financial products offered greater returns.

12 banks report drop in deposit growth in Q4 FY25 as mobilisation challenges persist

In the January–March quarter, the RBI slashed the repo rate by 25 basis points in its February monetary policy, prompting banks to offer lower rates on maturing deposits and sacrifice deposit growth.

Bankers fear strain on deposit mobilisation after IndusInd Bank derivative loss

As the accounting discrepancy has come to light in March, a busy period for deposit mobilisation, it could hurt banks efforts to garner large deposits, bankers say

Private banks more successful than PSU banks in attracting deposits this fiscal

A lower deposit growth this fiscal has meant that PSU banks have lost the deposit market share by 10-70 basis points (bps) on-year, the IIFL Capital report said.

Pitch Report: Banks look for capex push and tax incentives to drive deposit growth from Budget 2025

Analysts expect the government to maintain a strong focus on capital expenditure, particularly in roads, railways, and urban development, to spur investment opportunities and thus credit demand for banks.

Banks’ Q3 business updates: Why is credit growth slowing sharply?

Business updates of banks suggest slowdown in credit growth and rise in stress across certain categories. Do these signal suggest a deeper demand slowdown?

MC Interview | Capital Small Finance Bank looks to maintain CASA at 37%: CEO Sarvjit Singh Samra

Bank’s cost of deposit was 5.8 percent in Q1, which is presently 5.9 percent, change of just 10 bps primarily because of the change in the composition of the deposit, Samra said

Credit, deposit growth gap narrows to 18-month low in September

Deposit growth for banks as on September 20 stood at 11.34 percent year-on-year, while credit growth was 13.1 percent posting a credit-deposit spread of 1.76 percent

Banks’ deposit growth rate rises over 2-month high in September, shows RBI data

The provisional numbers reported by banks have shown that deposit growth rate on a yearly basis was higher in the second quarter of the ongoing financial year compared to the first quarter.

YES Bank’s CASA rises 28.4% YoY in July-September quarter

The total deposits of the bank increased 18.3 percent on-year to Rs 2.77 lakh crore in July-September quarter, as against 2.34 lakh crore in the year-ago period.

Banks may continue to dip into CDs till deposits see growth

Banks have been struggling with slower deposit growth compared to credit growth over the past few months. The increase in gap between deposits and credit, creates an asset-liability mismatch for banks.

Few banks increase MCLR to transmit repo rate hike, rising cost of deposits

The 1-year median marginal cost of funds-based rate (MCLR) of SCBs increased by 170 bps during May 2022 to July 2024. Consequently, weighted average lending rates (WALRs) on fresh and outstanding rupee loans increased by 181 bps and 119 bps, respectively, during May 2022 to June 2024, RBI said.

IDFC First Bank plans to grow deposits by 25% CAGR until FY27, says V Vaidyanathan

Total deposits of the bank increased by 38.7 percent on-year from Rs 1. 45 lakh crore as of March 31, 2023 to Rs 2.01 lakh crore as of March 31, 2024.

The red herring of bank deposits being diverted to mutual funds

RBI has slowed money creation dramatically which has crimped deposit growth.

HDFC Bank plans to enhance deposit growth through personalised customer experiences, says Atanu Chakraborty

Chakraborty's remarks come at a time the banking sector is experiencing sluggish deposit growth, partly due to the increasing attractiveness of alternative investment options for household savings.

Can SBI get away with low deposit growth in FY25?

SBI has enough liquidity or excess SLR to fund its loan growth target for FY25

Here’s how to bypass the hurdle of credit-deposit growth mismatch

Indian banks have experienced significant credit growth in the post-pandemic years, but weak deposit growth threatens to undermine this progress. Permitting banks to issue bonds could address the challenge of sluggish deposit growth

Private banks continue to bet on physical branch expansion to garner deposits

Banks are facing challenges to garner more deposits. And deposit growth has not been in line with credit growth which has worried the RBI

SBI, peer PSU banks seek govt nod for incentives to beef up deposits: Report

As per the report, banks have made representations to senior government officials flagging the slowdown in deposit growth.

In the margin game, public banks are between a rock and a hard place

The compulsion to increase market share and attract more deposits has meant that public sector banks have seen a bigger erosion in net interest margins. The increase in risk weights on select loans has also hurt these banks

IDFC First Bank’s CD ratio may come down to 90-92 percent by end of FY25, says CEO V Vaidyanathan

Vaidyanathan said the Rs 1 crore penalty imposed on the bank earlier this month was for the sanction of an infrastructure project financing loan to a Karnataka PSU company in 2016 or 2017.