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Finance Minister Nirmala Sitharman on Monday held a performance review meeting with heads of public sector banks and urged them to improve their deposit growth. Deposits have been growing 300-400 basis points lower than the credit growth in the last few months, creating an asset-liability mismatch for banks. According to sources, the finance minister reviewed the financial performance of banks and progress made in the implementation of various flagship schemes of the government, including PM Awas Yojana, PM Surya Ghar and PM Vishwakarma Yojana. Sitharman also took stock of deposit growth, credit-to-deposit ratio (CD ratio) and asset quality, sources said. The minister asked the banks' chief to focus on core banking business and increase the pace of deposit growth by introducing innovative products. Earlier this month, the finance minister had said there is a mismatch between deposit and lending growth. "Growth in lending is higher...I will be meeting banks (on August 19) for vari
Regulatory moves discouraging retail investors' derivative market bets may help the banking system garner the much-needed deposits, SBI Chairman Dinesh Kumar Khara has said. Khara said the budget announcements like the tweaks on the short-term and long-term capital gains will not lead to much gains from a deposit accretion perspective. "F&O (future and options) kind of things are being discouraged for the retail (investor) by the regulator. Those who are resorting to such kind of an instrument, they might come back to the banking system," Khara told PTI over the weekend. It can be noted that concerns over losses incurred by 90 per cent of investors in the derivative trades have led to fears of household savings being blown in speculation rather than being deployed for productive purposes among policymakers. As per capital markets regulator Sebi, retail investors lost Rs 52,000 crore in such activity in FY24 alone which necessitates a clampdown. Sebi has come up with a seven-point