Indian households are considering shifting savings back to bank deposits as weak stock markets and geopolitical worries sap demand for riskier assets, the chief executive officer at Sumitomo Mitsui Banking-backed Yes Bank said.
¡°Anecdotally, both at the bank and across the industry, we see some savings returning to deposits,¡± Vinay Tonse, the head of India¡¯s sixth-largest private sector lender, said in an interview. ¡°We are receiving a lot of inquiries about whether this is a good time to shift from equities to fixed deposits.¡±
A gradual return to fixed deposits could provide relief to lenders that have struggled to keep pace with credit demand amid intense competition. Bank credit in India grew 16.2% in the year through May 15, the fastest pace since June 2024, according to data from the central bank, while deposits increased 12.2% over the same period.
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