Banks need to align credit and deposit growth: RBI

By
Ziraat Times
-

Follow Ziraat Times on Whatsapp - Join Now

New Delhi, Aug 19: Pressure on net interest margin (NIM) may soon force commercial banks to align loan growth more closely with deposit growth, stated the Reserve Bank of India’s (RBI) latest State of the Economy Bulletin.

The report highlighted the imbalance between the two financial metrics, as deposit growth has consistently outpaced loan growth for over a year. This trend has led regulators to push banks to bolster their resource mobilisation efforts.

According to the latest data, as of July 26, year-on-year bank credit growth stood at 13.7 per cent, while deposit growth lagged at 10.6 per cent.

“In the quarter-ended June 2024, banks have been impelled to increase mobilisation of funds through certificates of deposit and through high value saving accounts and fixed deposits,” stated the report authored by RBI staffers.  “Going forward, the low share of low-cost current and saving deposits in total deposits may curb domestic fundraising efforts of banks through high-cost funding options, due to a likely squeeze on banks’ net margins.”

“This may also force banks to align loan growth more closely with deposit growth and normalise incremental credit-deposit ratios,” it said. “In part, this behavioural shift may be induced by signs of stress in the unsecured loan segments, especially in personal loans and credit cards portfolios.”

The bulletin pointed to a significant increase in certificate of deposit (CD) issuances by banks, which reached ~3.49 trillion during 2024-25 (until August 9), compared to ~1.89 trillion in the same period last year. This surge in CD issuance is attributed to the slower growth in deposits compared to credit, pushing banks to seek alternative funding sources.

RELATED ARTICLESMORE FROM AUTHOR

326 COMMENTS

  324. Ya sea que estés buscando un casino online gratis para probar juegos sin riesgos o un casino en línea Perú con opciones en moneda local, Palms Bet es la elección perfecta. Sweet King tiene un modelo matemático de lo más goloso. El premio máximo puede llegar a multiplicar x10.000 tu apuesta y la RTP es del 96,54 %, un porcentaje que se encuentra por encima de la media de la industria, según nuestra guía de estrategia para tragaperras. Pragmatic Play le concede una volatilidad de 5 5. Pragmatic Play ofrece un amplio abanico de juegos de casino online. Aunque la mayoría destacan por su emoción, no debemos perder de vista la seguridad en el juego. En Templo de Slots, fomentamos el juego responsable para garantizar una experiencia de juego positiva. Una plataforma creada para mostrar el trabajo que llevamos a cabo para hacer realidad una industria del juego online más transparente y segura.
    https://observatoriodepacientes.com.ar/2025/05/26/resena-del-juego-globo-una-aventura-divertida-de-smartsoft-para-jugadores-en-peru/
    If you’re looking for a reliable and entertaining online slot experience, I highly recommend checking out Sweet Bonanza. Good luck to all! Juega a Sweet Bonanza y gana dinero en sitio 1Win (⭐⭐⭐⭐ 8.8 10.0) Clasificación: ⭐⭐⭐⭐⭐ – (9.0 10.0) sweetbonanzatr.pro # sweet bonanzapin up win Всем привет! Хочу поделиться своим опытом игры в bigbassbonanza.online , слот, который предлагает невероятный выбор игровых автоматов. Как новый игрок, я получил отличное стартовое предложение, что сделало мои первые сессии еще более захватывающими. Copyright © 2020, lafactoriaweb

  325. Andar Bahar is a simple game of chance played with a standard deck of cards. The main goal of the game is to predict whether the first card called the Joker features in the Andar or the Bahar box. P.O. Bidholi Via Premnagar, Dehradun-248007 With its simplicity and fast-paced gameplay, Dragon Tiger provides an exciting and engaging casino experience. If you are looking for an online casino that offers Dragon Tiger, you can check out onlinecasinoindiarealmoney.in for a list of trusted online casinos in India. With a user-friendly design, game variety, and an easy-to-use payment system has made PK68 game a number choice. The game has a dedicated app for android users which you can download using the official link above, and iOS users can access its online version and play your favorite games using any browers.
    https://thebeside.org/football-x-review-session-length-optimizer-and-peak-hours-in-smartsofts-latest-casino-game/
    SpinCity Zimbabwe is licensed & regulated by the Lotteries & Gaming Board of Zimbabwe. For unlimited usage of this vector. You can email the site owner to let them know you were blocked. Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page. You are getting out of balance, please deposit рџљЂ Play JetX Casino You must add Vecteezy to final design Reload the page to experience the site. Tere is no guaranteed way to predict when a crash will happen in JetX because the outcomes of this online casino game, as well as slot machines, are generated by a Random Number Generator (RNG) . Our customers enjoy multiple offers and promos enriching their overall betting experience. We have free bets on our virtual game popularly known as Odi League. Weekly free bets are available to our loyal customers on a freebet for every 4 bets placed basis. A guaranteed freebet for new customers is the way customers can test our platform risk free (without depositing).

  326. The website is an information resource. The Web site is not the site of any casino mentioned in the pages of the site, and does not engage in the arrangement of gambling, lotteries, or other games for money. It’s time to soar to new heights with BGaming! Launching the rocket to the stars means getting incredible winnings! Space XY is an exciting game with easy gameplay. Don’t hesitate to join a breathtaking ride to the stars and make a fortune. BENEFITS OF THE SPACE XY GAME IN 1WIN The Space X game has many features and benefits, making it increasingly popular with gamblers around the world. Here are the most important features: Your gaming strategy is the most important factor in winning. The task of each player is to find their own unique strategy. Once this is done empirically, winnings will regularly occur.
    http://bbs.sdhuifa.com/home.php?mod=space&uid=854364
    There’s no doubt that JetX is a risky game. The odds are against the player, and in the long run, the casino will always have the advantage. However, this doesn’t mean you can’t win money by playing JetX. Adopting a sound betting strategy and managing your bankroll responsibly are crucial to maintaining a positive balance in the game. By following our tips, you can improve your chances of winning and make the JetX rocket game a more enjoyable experience. We offer thousands of new casino games in different categories and no matter what kind of games you like; we ensure that you can find lots of options that suit you. Moreover, you have an alternative besides real money gameplay: you can try most of our games for free. In other words, we also offer you the best free casino games. You can play casino games for real money or practice for free first, the decision is yours. In any case, you can be sure to have a lot of fun with casino games with the best odds. Below, we explain what you can expect from ICE Casino games.

Leave a Reply to RonaldFluob Cancel reply

Please enter your comment!
Please enter your name here