The former SBI chief said that India is transitioning from a dependence on deposits to a more balanced relationship between deposits and market debts, a trend seen in every developed economy.
“To be a deposit-led banking system like we were, I don’t think that’s ever going to come back,” she stated, emphasising the importance of balance to avoid likely economic downsides. Bhattacharya, currently CEO and Chairperson of Salesforce India, was speaking with CNBC-TV18 Managing Editor Shereen Bhan.
The demographic shift has played a crucial role in this transformation, Arundhati said, while adding that today’s youth, with greater disposable incomes and a higher risk appetite, are not burdened by the financial responsibilities faced by earlier generations.
The former banker said that her generation had to support both older and younger family members, however, the current younger population is free to focus on investments rather than saving alone.
A key factor in advancing this financial journey has been the evolution of systematic investment plans (SIPs), which have further democratised investment opportunities, allowing individuals to invest smaller amounts into mutual funds and gain access to the market.
“Today, because you can put ₹2,000 at a time into the market, you can buy into mutual funds, and the mutual funds, in turn, are able to give you that market access,” she explained.
Amid these changes, the banks’ task is cut out, said Bhattacharya, highlighting the necessity for treasury departments to enhance their operations. Historically criticised for “lazy banking,” these departments must now sharpen their focus on balancing assets and liabilities effectively.
“Our treasuries really need to tone up to understand how they should balance assets and liabilities,” Bhattacharya told CNBC-TV18.
Furthermore, the lenders need to ensure that the pricing of liabilities aligns with the necessary margins, and that will make treasury operations central to banking strategies in the future, she added. Unless this is done, the banks risk falling behind in a fast-changing financial ecosystem.
RBI Governor Shaktikanta Das recently flagged concerns on the widening gap between credit and deposit growth with household savings increasingly moving away from traditional deposits, urging banks to adopt new strategies to attract deposits and manage liquidity risks effectively.
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