Veteran Indian Banker Says New Tools Needed as Deposits Fizzle

Indian lenders are struggling to convince equity-loving investors to save their money in deposits. Veteran banker Neeraj Gambhir says it would be helpful if banks had more options to raise funds.

India’s financialization boom has fueled a culture of investing, with many savers opting for stocks instead of keeping money in banks. That shift, along with strong demand for loans, has created a funding challenge for banks, driving the sector’s credit-deposit ratio to a record last month and leading them to ask regulators to relax liquidity rules.