India's banking sector faces liquidity issues as credit growth outpaces deposit growth, with a 78.1% credit-deposit ratio.

A FICCI-IBA survey indicates that India's banking sector may face liquidity issues as credit growth outpaces deposit growth, with the credit-deposit ratio reaching 78.1%. Two-thirds of surveyed banks reported a decline in current and savings account deposits, while demand for long-term credit in sectors like infrastructure is rising. Despite these challenges, banks are optimistic about non-food credit growth and are exploring partnerships with fintech for enhanced services.

September 10, 2024
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