Experts believe that with liquidity becoming tighter and credit demand remaining strong, lending institutions are in the race to acquire the maximum deposits. SFBs are offering FD rates that are 75-100 basis points higher than those offered by PSBs and private banks.
LKP Securities estimates bank credit growth to be around 15% for FY24, around 400bps higher of India’s nominal GDP. Deposit growth is expected to be at 11% as the banks are raising the deposit rates.