Deposit Growth Must Pick Up To Sustain Credit Expansion, Warns Axis Bank CEO

Speaking to Siddharth Zarabi, Group Editor, Business Today, on the sidelines of the World Economic Forum in Davos, Axis Bank MD and CEO Amitabh Chaudhary said deposit growth will be critical to sustaining India’s credit expansion. While credit demand is showing signs of revival, he cautioned that if deposit growth does not pick up, lending momentum could slow again. Chaudhary noted that the RBI has assured durable liquidity support, which should help ease pressures in the banking system. However, he stressed that single-digit or low double-digit deposit growth will not be sufficient to keep the economy moving at a steady pace. He remains optimistic that over the next 12 to 18 months, deposit mobilisation will improve, supporting credit growth and economic momentum.