Banking on the budget with no surprises

The future of deposits will be an issue for banks. This year, quite ironically, banks have been happy with deposits not growing, as there were few avenues to lend, anyway

The Union Budget may not have much to talk about on what could be called clichéd subjects such as bank capitalisation, the bad bank or even a DFI (development finance institution). So, what is it that banks will be looking out for in tomorrow’s Budget?

It will be related more to business where banks’ strategies will be built, based on what can be taken from the budgetary numbers. A bank’s business revolves around two pivots — credit and deposits; and they would be looking for signals on these.

The overall state of the economy and growth assumed will be important, as this