Deposit growth reached 14.04% mid -December 2023. For a large part of FY25, banks were pursuing deposits with special schemes, as the deposits failed to match the credits demand. Now, despite the reduction in policy rate of 100 basis points with cuts in the cash reserve ratio (CRR) in the stages, the demand for credit has slowed down, while the speed in the deposits has been collected.
A base point is a hundredth of the percentage point. The reduction in policy rate has broadcast rates to eliminate users, but only partially. Full Pastru will take some more quarters, while the Fi RST announced the results of the quarter. The data of the Central Bank has shown that about 25-potawnts have been on a long transmission loan, while the Fi X deposits rates have been reduced by 30-70 basis points since February 2025.
Credit growth can remain weak as long as structural improvements in tariff rates and production are taken to promote investment and export. Chief India Economist, Pranjul Bhandari said, “There is a place for a new manufacturer and exporter of mid-tech goods. India can embrace the opportunity with its abundant labor and wage cost profit.” HSBC“But to do this, we believe that it requires correct improvements – low tariff rate on intermediary input, more business deals with other economies, more openness for FDI influence OduS, and more ease of trading in states.”
