Declining bank deposits raise concerns about NBFC's fund raising capacity: Report

CareEdge Ratings has raised concerns about the credit-deposit ratios of Non-Banking Financial Companies (NBFCs) due to declining deposits. The rating agency suggests that these ratios could affect NBFCs' ability to secure funds. The report also highlights the need for increased regulatory supervision, which could lead to higher compliance costs. The State Bank of India (SBI) reported that credit growth in Indian banks is outpacing deposit growth, despite increased investments in mutual funds and equities.