Loan growth is likely to stay sluggish this yr due to weak demand & cautious approach on unsecured lending. Going forward, gap between credit growth & deposit growth is likely to shrink.
The central bank last month issued a circular ordering banks to start, from next year, to keep aside larger buffers in relation to accounts connected to the internet, mobile or UPI.
To avoid high credit-deposit ratios, banks need to maintain healthy deposit base — a difficult task considering the competition they face from MFs & physical assets like gold, real estate.
At 'Viksit Bharat, Viksit Jammu Kashmir' event in Srinagar, Modi rebuked previous governments for corrupt practices that destroyed bank & risked thousands of crores of depositors' money.
UCBs accounted for 1.8% of total industry credit in September 2025—down from 2.2% five yrs ago—showing that they are losing ground to faster PSU banks.
This is the game every nation is now learning to play. Some are finding new allies or seeing value among nations where they’d seen marginal interest. The starkest example is India & Europe.
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