Are Capital Markets Competing With Banks For Retail Capital? NSE CEO Answers

At the BT Best Banking & Economy Summit, Ashishkumar Chauhan, MD & CEO, NSE, addressed the question of whether capital markets are competing with banks for deposits and retail savings. He explained that the banking system and stock markets are structurally complementary, not rivals. Banks function through intermediation, where they absorb lending risk, while capital markets enable direct participation between investors and companies. With India saving $1.1–1.2 trillion annually in a $4+ trillion economy, only a small portion flows into equities, with the majority still parked in bank deposits, gold and real estate. Chauhan emphasized that even equity investments ultimately move through the banking system, making this an expansion of financial channels rather than a competition for capital.