Banking Sector Outlook
According to a latest Crisil report, bank lending in India is projected to grow at 11-12% in FY25. At the same time, deposit growth is expected to remain substantial, driven by increased liquidity as a result of recent RBI measures.
Deposit & Lending Trends
Deposit growth: Strong momentum expected in the current fiscal year
Lending growth: Forecast at 11-12%, reflecting steady credit demand
Liquidity boost: Recent steps by the Reserve Bank of India (RBI) support growth
Structural Changes in Deposits
The report also highlighted structural shifts in the banking sector:
Decline in household participation in term deposits
Drop in the Current Account Savings Account (CASA) ratio
Indications of changing customer preferences in banking deposits
Conclusion
The Indian banking sector is set for robust lending growth alongside healthy deposit expansion in FY25. While RBI’s liquidity support strengthens the system, evolving customer behavior may reshape deposit structures in the coming years.
