Bain & Co.: Macro Factors Support Indian Banks' Deposit Growth

Bain & Co.: Macro Factors Support Indian Banks' Deposit Growth

Assessment

Interactive Video

Business

University

Hard

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The video discusses the ongoing competition among banks for deposits, driven by macroeconomic factors such as changes in India's income pyramid and financialization. It highlights the shift in income distribution, with more households moving to higher income brackets, and the resulting impact on deposit growth. The video also examines the competition between private and public sector banks, the current state of bank profitability, and the influence of financialization on savings behavior. Banks are encouraged to develop strategies to attract deposits from various customer segments.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the main factors driving the competition among banks for deposits?

Increasing interest rates

Changing income distribution in India

Government regulations

Decreasing number of banks

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is the income distribution in India expected to change by 2020?

No significant change in income distribution

Fewer households earning more than 5 lakh annually

More households earning less than 5 lakh annually

More households earning more than 5 lakh annually

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which sector is gaining market share from public sector banks in India?

Regional rural banks

Cooperative banks

Foreign banks

Private sector banks

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a challenge banks face despite healthy credit growth?

Lack of technological advancement

High operational costs

Low net interest margins

Deposit slowdown

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What financial assets are younger populations investing in, affecting bank deposits?

Real estate

Cryptocurrencies

Insurance and mutual funds

Gold and silver