Credit-deposit gap to persist as loan demand dynamics have changed, says SBI Research

A noticeable gap between credit and deposit growth is troubling the banking landscape. Consumers are shifting their savings from traditional deposits to diverse financial options. Amid geopolitical uncertainties and rising oil costs, companies are requesting more working capital loans. To alleviate this funding pressure, newly introduced FCNR(B) deposits could provide a short-term remedy. It is projected that savings will increasingly gravitate towards the five-year maturity category.