look news india
Ahmedabad: After a prolonged decline in bank deposits, overall growth is finally picking up to some extent. However, higher costs are likely to result in an estimated 12.6% YoY growth in FY2024 and 13.5% YoY growth in bank deposits in FY2025 with an increase of 100 basis points.
According to a report by Global Financial Services, total bank deposits are expected to grow by 13.5% annually in the next financial year. Credit growth may accelerate from 21% per annum in FY2024 to 11.5% per annum in FY2025. Due to which the loan-deposit ratio softens.
Small and medium-sized private banks may also raise interest rates to attract deposits. Small lenders will take time to build a low-cost current account and savings account base.
Hence lenders are currently focusing more on savings accounts by offering attractive rates.
Small Finance Bank's total deposits stood at Rs 18,860 crore at the end of Q3FY24. Meanwhile, the current and savings account ratio stood at 19%. The small finance bank targets 16%-18% deposit growth for Q3FY24.
The lender conducts customer service reviews at regular intervals to ensure customer satisfaction with the bank. So that customers do not transfer their deposits to other lenders.