Banking system low-cost deposits could decline further, says SBI chairman Setty | Mint

In this article, SBI Chairman Dinesh Kumar Khara expressed concerns about a potential further decline in low-cost deposits within the banking system. The reduction in such deposits could be driven by various factors, including shifts in economic conditions and changes in consumer behavior. Low-cost deposits, such as those in CASA accounts, are crucial for banks as they provide a stable and inexpensive source of funding. The anticipated decline might impact banks' profitability and liquidity management. This development underscores the need for banks to adapt their strategies to maintain financial stability amidst changing deposit trends.