No Change In Deposit Rates Says SBI Chairman

“I do not think any one of us in the near term would be tweaking the deposit rates significantly unless the liquidity position improves, and credit growth slows down. There are so many other factors, but otherwise, I do not think there will be any significant movement in the deposit rates," CS Setty, chairman, SBI told reporters on Saturday during the Bank's Q3FY26 earnings press conference.

Setty said that currently banks are facing challenges in deposit mobilisation as household savings are moving towards mutual funds, insurance, pensions, small saving schemes and equities.

“We remain mindful of structural shifts in the financial system, particularly the increasing financialisation of household savings towards market-linked instruments. This trend, while positive for capital market debt, presents a structural challenge for deposit mobilisation and will gradually reshape bank balance sheets,” Setty said, adding that SBI is proactively adapting by strengthening current account growth, maintaining leadership in savings deposits, and leveraging UNO to drive customer acquisition and retention.

He also called for deepening the bond market where banks will be able to access bonds equivalent to deposit rates giving lenders the flexibility to structure their balance sheet.

SBI on Saturday, February 7, raised its FY26 credit growth guidance to 13–15 per cent from 12–14 per cent earlier, after reporting a strong December-quarter performance that saw net profit jump 24.5 per cent year-on-year to ₹21,028 crore. However, the bank’s deposit growth lagged credit growth, with deposits growing 9 per cent Y-o-Y to ₹57 lakh crore. The lender is shifting away from high-cost wholesale deposits towards retail term deposits and low-cost current account saving accounts.

"Credit growth has remained strong and there has been a robust demand for credit across all the segments,” said Setty, adding that all the components-retail, SME, and corporate have witnessed double-digit growth.

According to Setty, the India-US trade deal is expected to unlock fresh opportunities for exporters and multinational supply chains, which could translate into stronger corporate lending and higher working-capital demand in the coming quarters.

Meanwhile, Financial Services Secretary M Nagaraju in an interview to PTI said that public sector banks are on track to post a record combined profit exceeding Rs 2 lakh crore in the current financial year. He emphasised that the broader Indian banking system remains robust, supported by steady credit expansion and healthy deposit mobilisation. Credit growth at PSBs is running at about 12 per cent this year, which he described as tremendously “good”, while deposit
growth of around 10 per cent is also reasonable. "This year (ongoing financial year) we will cross Rs 2 lakh crore. We already touched almost Rs one lakh crore in the first half...I think we will cross Rs 2 lakh crore,” he said.