State Bank of India may be taking the higher road as it joins the scramble for customer funds without resorting to a rate war, but its outlook signals an extended industry struggle for deposit growth.
At its Q2 earnings call on Friday, India's largest bank tempered its guidance on deposit growth to 10-11% from 12-13% for 2024-25 as customers might have now found more lucrative investment avenues. Slowing deposit growth remains a worry for the industry.
SBI chairman C.S. Setty, who took over from Dinesh Khara at the end of August, said the bank has introduced new products, value-added services, and premium banking services to attract high-quality customers.
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