SBI Chairman Dinesh Khara said on Friday that the bank is managing well despite the gap between deposit and loan growth. The bank is adjusting its investments in government securities to provide the necessary funds for its loan growth.
For almost two years, deposit growth has been lagging behind credit expansion, and SBI is experiencing this trend too. Some experts think this is due to people moving their savings into higher-yielding investments, while others, including SBI’s own researchers, believe the concern is overblown and that there are actually more new deposits than loans since FY22.
Khara reassured that SBI can support its loan growth and does not see this as a major problem. He noted that the bank is reducing some of its excess investments to manage its loan book better. He emphasized that the bank is focusing on earning higher returns from loans compared to the yields on its investments.
Khara also mentioned that deposit rates are not the main factor in their strategy. The bank’s investment book is over ₹16 lakh crore, and it is making adjustments to support loan growth. He expects deposit and credit growth to align more closely by mid-2025.
Additionally, Khara highlighted the potential for India’s audit and accounting strengths to boost export revenues, suggesting that the successful global capability centres model used in IT could be applied here.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
