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LATEST NEWS UPDATES | RBI concerned about slow deposit growth -Falaknaaz Syed

RBI concerned about slow deposit growth -Falaknaaz Syed

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published Published on Nov 22, 2022   modified Modified on Nov 23, 2022

-Deccan Chronicle

Mumbai: The Reserve Bank Of India is concerned about the slow deposit growth and how banks would support double-digit credit growth amidst tightening liquidity. The issue was discussed on Wednesday when RBI governor Shaktikanta Das met managing directors and chief executive officers of public sector banks and key private sector banks.

A banker who attended the meeting said, "It was a routine meeting that takes place half yearly. We discussed the banking scenario. One of the issues discussed was that while credit growth has touched 18 per cent, deposit growth is languishing in single digits."

"While the loan rates linked to the repo rate have gone up by 190 basis points in line with the increase in repo rate, the deposit rates have not gone up much. However, banks are now slowly raising deposit rates.

"Another parameter discussed was asset quality which has been good, as slippages are falling. Every banker gave his view on how the last six months have been and how the next six months would be," he added.
The meeting was also attended by deputy governor M.K. Jain along with a few senior RBI officials.

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Deccan Chronicle, 17 November, 2022, https://www.deccanchronicle.com/business/in-other-news/171122/rbi-concerned-about-slow-deposit-growth.html


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