Watch this metric for your bank friends
The loan versus deposit growth equation is one to watch
Loan growth at 16.7%
Deposit growth at 20%
Loan growth at 18%
Deposit growth at 10%
Loan growth cannot be higher than deposit growth for long!
ICICI Bank will need to ramp up deposit growth otherwise it will eat up capital very fast!
Understand this for your bank more
All equations and matrices are good. An agency of HDFC grants one time overseas education loan of Rs50,00,000/- lakhs and above in a single Strech [read TOI of yesterday. This year over India if 1000 nos taken loans [if again on fake visa/fake documents/fake agent-if happens], how many crores in a year is Laundered abroad. And if happened during last 3 years so what. Checks and balances missed everywhere due to covid. Belief is used by the middlemen. So also, temporary staff at the Consulate offices. Let us put facts of each bank as we understand them. more
Large loans are disbursed in installments. If the amount of deposits is much more than loans, it's also harmful to the bank. Indepth study needs to be done. Simply going by %age could create confusion. more
I read a newsletter saying that ICICI bank has raised a loan from the market recently. So, your concern seems to be addressed. more