Against this backdrop, Sarvjit Singh Samra, Managing Director & CEO of Capital Small Finance Bank, highlighted how these changes are playing out in real banking behaviour and what they could mean for everyday savers and borrowers.
On the savings side, he pointed out that deposit mobilisation has become more competitive as customers now have more options to park money.
This shift is important for depositors because banks that rely on stable, retail deposits tend to offer more predictable interest rates and lower risk compared to those dependent on short-term or high-cost funds.
Capital Small Finance Bank reported deposits of over ₹10,018 crore as of March 2026, growing 20% year-on-year, with more than 90% coming from retail customers.
According to Samra, this kind of retail-heavy deposit base—along with a CASA ratio of 34.7%—helps banks maintain stability even in changing interest rate cycles.
For savers, the key implication is that fixed deposit rates are not just driven by policy rates, but also by competition among banks to attract retail money.
Samra noted that interest rate cuts are gradually getting reflected in deposit repricing, meaning FD rates may adjust slowly over the next few months rather than change abruptly.
On the borrowing side, credit demand remains strong in retail and MSME segments, supported by policy measures aimed at improving liquidity and credit access for small businesses.
The bank’s gross advances rose to ₹8,687 crore, up 20.9% year-on-year, indicating steady demand for loans.
For borrowers, especially small businesses and middle-income households, this reflects continued availability of credit for expansion, working capital, and housing-linked needs.
However, lending remains largely secured, which influences how banks manage risk and decide loan pricing.
Samra also noted that asset quality has improved, with gross NPAs declining to 2.54%. For customers, this is a signal that banks are becoming more cautious and structured in lending, which can help prevent sudden tightening of credit conditions.
More broadly, banking is also becoming faster and more digital.
Customers today can expect quicker loan approvals, paperless onboarding, and mobile-first banking experiences.
However, Samra emphasised that relationship-led banking still matters—particularly for MSME borrowers who need advisory support and flexible credit solutions.
At the same time, the traditional deposit–lending model is not disappearing but evolving. Customers are now choosing between banks, mutual funds, and digital products for savings, while banks are using technology and data to refine lending.
