The battle for deposits will intensify

The challenge before the banking system is how to keep the net interest margin healthy in a rising interest rate cycle


Tamal Bandyopadhyay
As of October 7, the banking system’s deposit portfolio is to the tune of Rs 172.8 trillion and the loan book Rs 128.6 trillion. During the current financial year so far, deposit growth has been 4.9 per cent in contrast to 8.1 per cent growth in credit.

This is in keeping with the trend of the past one year — a 9.6 per cent deposit growth versus 17.9 per cent credit growth. Indeed, the pile of deposits is far bigger than that of the banking system’s loans portfolio but even in absolute terms, in the past one year, credit growth has
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 30 2022 | 4:41 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to