Banks Get an A for Assets, a C for Cash Flow—Fitch Sounds Alarm on Deposits

On July 15, 2025, Fitch Ratings released a detailed commentary highlighting deposit pressure across Indian banks, even as core financial metrics remain robust. The analysis follows the Reserve Bank of India’s (RBI) tighter scrutiny of unsecured retail lending and liquidity management, which has led to slower loan growth and a renewed focus on deposit mobilization.

 

Key Findings from Fitch’s Review

Deposit Pressure & Regulatory Oversight

Analyst Commentary

“Improved deposit mobilization will be key to preserving the gains in LDRs and supporting future loan growth,” said Saswata Guha, Senior Director at Fitch Ratings. “The sector’s resilience is evident, but funding dynamics remain a watchpoint,” added Prakash Pandey, Associate Director.

 

Sources: Fitch Ratings, Times of India, Fitch Ratings, Economic Times BFSI