Geopolitical Risks May Sustain High Credit-Deposit Growth Gap

A recent report by SBI Economic Research says that the big difference between how much banks lend (credit) and how much they receive in deposits might stay high.

This is because of problems like geopolitical risks and supply shocks.

However, more money coming into special accounts for foreign customers, called FCNR(B) deposits, could help balance things out.

The report also talks about how oil prices affect lending and how food prices affect deposits.

Banks are advised to manage their money carefully during these times.

There have been some changes in where people put their money in banks, like more people in smaller towns and cities saving, and a preference for saving money for a few years.