Axis Bank CEO Flags Deposit Stress, Seeks RBI Liquidity Push Amid Credit Growth

• Axis Bank CEO Amitabh Chaudhry highlighted deposit mobilization as a "hard grind" in India, despite accelerating credit growth.
• Chaudhry emphasized the need for sustained liquidity support from the Reserve Bank of India (RBI) to manage the divergence between credit and deposit growth.
• He noted that hiking retail deposit rates might not significantly improve the situation, and the RBI is less aggressive on loan-to-deposit ratios (LDRs).
• Chaudhry reported stabilizing retail asset quality and net interest margins, with a benign wholesale book.
• He suggested India could tolerate slightly higher inflation to support economic growth and indicated interest rate cuts might be over.

Why It Matters: Axis Bank CEO warns of deposit stress amid rapid credit growth, urging RBI for liquidity support.