FM exhorts heads of PSBS to improve deposit growth

Deposits have been growing 300-400 basis points lower than the credit growth in the last few months

- 

Finance Minister Nirmala Sitharman on Monday held a performance review meeting with heads of public sector banks and asked them to make concerted efforts to garner deposits.

Deposits have been growing 300-400 basis points lower than the credit growth in the last few months, creating an asset-liability mismatch for banks.

During deliberations on the deposit mobilisation, she said that while the credit growth has picked up, mobilisation of deposits could further be improved to fund the credit growth sustainably, and asked banks to make concerted efforts to garner deposits by conducting special drives.

Sitharaman also advised public sector banks (PSBs) to have better relationships with their customers for efficient customer service delivery, an official statement said.

She asked banks to ensure that employees reach out to connect with their customers, especially in rural and semiurban areas.