Banks' Debt Surges by Rs 88,000 Crore in Final Weeks of 2024

In a significant financial shift, Indian banks' debt increased by Rs 88,000 crore during the last two weeks of 2024, reflecting a 26% rise for the year. The total outstanding borrowings reached Rs 9.6 lakh crore, driven by higher interest rates and a growing credit-deposit gap. This trend may pressure bank profitability as they navigate costly borrowings amidst tight liquidity conditions. The credit-deposit ratio stands at 78.67%, indicating challenges in deposit mobilization despite efforts from the Reserve Bank of India.

Source: The Economic Times