SBI Research Warns of Deposit-Credit Growth Wedge

SBI's economic research team says that the gap between the growth of bank deposits and the growth of loans (credit) might keep getting bigger.

This is because of risks from things happening around the world (geopolitical risks) and sudden problems in supply.

Even though deposits might grow because of new foreign currency deposits, the team warns that these risks could still cause problems.

They also found that when oil prices go up, it affects loans more, and when food prices go up, it affects deposits over time.

Indian banks are in a good position with strong finances, but they need to be careful with these risks.