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Credit growth outpacing deposit growth could lead to liquidity challenges: Report

Millennium Post Delhi

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New Delhi 11September2024

Raising deposits to keep pace with loan growth and keeping the credit cost low remains on the top of banks' agenda, a FICCI-IBA report said

Credit growth outpacing deposit growth could lead to liquidity challenges: Report

Credit growth is outpacing deposit growth, which could lead to liquidity challenges for the banking system, a report said on Tuesday.

Raising deposits to keep pace with loan growth and keeping the credit cost low remains on the top of banks' agenda, a FICCI-IBA report said.

More than two-third of respondent banks (67 per cent) reported a decrease in the share of Current Account Savings Account (CASA) deposits in total deposits in the current round of the survey, the report said.

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