New Delhi: Banks in India are struggling to attract deposits in the financial year 2023-24. "Data from RBI showed the credit-deposit ratio at its highest in at least 20 years as loan offtake rose across categories including home loans and other loans for consumption," Livemint reported. The credit-deposit ration shows how much of a bank's deposit base is being used for loans.

The current credit-deposit ratio is at 80%, Livemint reported, which is the highest it has been since 2015.

"Customers are chasing high-return, equity linked-products," Bhavik Hathi, managing director of consulting firm Alvarez and Marsal, told Livemint – and so leaving less money as deposits in banks.

In the previous financial year, banks had hiked deposit rates to try and attract more money in this way. But the data shows that customers still do not seem to be biting.

"The pace of growth of bank credit surpassed deposit growth in FY24, the data showed. In FY24, while deposits grew 13.5% to ₹204.8 trillion, non-food credit grew 20.2% to ₹164.1 trillion as on 22 March. In FY23, deposits grew 9.6% and credit 15.4%," the newspaper reported.

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