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Deepak Parekh says no systemic risk for BFSI, but warns of loan growth slowdown ahead
Economy
Published on 5 May 2026
Loan growth may cool even without systemic stress
Banking and financial services veteran Deepak Parekh says global geopolitical shocks are unlikely to create systemic risk for India’s BFSI sector. Still, he expects a short-term slowdown in loan growth. Parekh also flagged rising REIT momentum, low insurance penetration, moderated deposit mobilization as retail shifts to mutual funds, and an AI transition that’s only beginning in finance.
- No major systemic risk expected for BFSI despite global uncertainty
- Short-term loan growth slowdown likely
- REITs are gaining traction in India
- Deposits are softer as retail prefers mutual funds
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times