SBI forecasts 15% growth in deposits for FY25

The State Bank of India (SBI) is expecting significant growth in deposits and credit for the fiscal year 2025. SBI predicts deposits to increase by 14.5%-15% and credit to expand by 16.0%-16.5% in FY25, anticipating a boost in economic activity. The RBI's Monetary Policy Committee (MPC) meeting is scheduled from April 3-5. This forecast follows continued strong credit growth, especially in agriculture, MSME, and services sectors, as indicated by recent data. On the banking front, while deposit growth has rebounded, the sustained momentum in credit growth has led to a widening gap between deposits and credit growth. As of March 8, recent data reveals a remarkable surge in credit growth for All Scheduled Commercial Banks (ASCBs), reaching an impressive 20.41%, up from 15.7% the previous year. Simultaneously, deposits saw a notable increase of 13.7%, compared to 10.3% in the preceding year. India's strong economic performance has not only captured attention but also attracted foreign investment inflows, surpassing other Asian markets in March.