Yes, you read that right. Even as RBI has slashed rates by 125 bps, fresh loan rates dropped only 80 bps. Why? Because credit demand is surging; up 18.3% YoY. Banks don’t need to slash prices to attract customers when customers are already rushing in. Deposit growth is lagging at 13.3%, keeping the loan-to-deposit ratio above 82%. That’s tight. But help might be on the way; FCNR deposits could ease funding pressure. And while industry and services credit are booming, Barclays warns growth might slow next year. So here’s the irony: a strong economy is ironically slowing down rate cuts for new borrowers. For job seekers eyeing BFSI roles, this is a clue; banks are under pressure but still thriving. Understanding this dynamic could help you ace interviews or spot trends in your next banking/finance role.