Deposit accretion structural concern for banks, high CD seen constraining credit growth: Report

Indian banks face a structural concern with low deposit growth. This is leading to high credit deposit ratios, which may limit loan growth to 13 percent in FY27. Despite this, the economy is showing signs of recovery. State-owned banks are improving their performance and asset quality. Non-bank finance companies will adopt a cautious approach. Microfinance institutions have overcome recent challenges.