Speaking to CNBC in an exclusive interview, Reserve Bank of India (RBI) Governor Shaktikanta Das discussed the issue of slowing growth in bank deposits underperforming an expansion in loans.
"So there is a gap of 350 to 400 basis points," he said, referencing the difference between credit and deposit growth.
Annual figures from August put loan growth at 13.6% with deposit growth at 10.8%, according to Reuters.
When lending outpaces deposits, net interest margins — or the difference between what a bank earns on loans and pays out for deposits — take a hit.
India's GDP slowed to 6.7% in the second quarter compared to last year's 8.2%, piling pressure on the central bank to reverse a recent hiking cycle.
Persons:
Shaktikanta Das, Das, Ashish Gupta, CNBC's
Organizations:
CNBC, Reserve Bank of India, Reuters, Mutual Fund, Monetary, MPC
Locations:
India