Country's largest lender, State Bank of India is targeting at a 15-20 per cent increase in deposits this fiscal, Chairman of SBI, Mr. Pratip Chaudhuri said.
The targeted growth rate is higher than the Reserve Bank of India's projected deposit growth of 14 per cent for the entire banking system this financial year. It is also higher than the growth rate of 14.85 per cent in deposits achieved by SBI in 2012-13. There was 13 per cent deposit growth in the banking system last fiscal.
Deposits growth in the banking system has slowed in the recent years largely due to households looking at alternate assets such as gold, mutual funds, equities and real estate to tackle their inflation worries.
Mr. Chaudhuri admitted that deposit growth had slowed down for the bank during 2012-13. Part of the reason is the absence of a level playing field with mutual funds.