The increase in short-term and long-term equity capital gains taxes and discontinuation of indexation benefits for property sales have reduced the regulatory arbitrage that other investments held over deposits, potentially drawing more future savers to traditional banking instruments. Bankers expect more term deposits now with the disappearance of the arbitrage, likely helping lenders that are struggling to raise liabilities in line with asset expansion. "Even if it does not lead to inflows into deposits, I think it will arrest any further outflows as savers will look at this avenue more closely," said Sanjay Mudaliar, executive director at Bank of Baroda. "Increase in government spending is also a big positive for banks because it could lead to higher inflows into bank deposits. So, all in all, the budget has been positive for banks because it has not aggravated the deposit challenge. Of course, banks will have to step up efficiencies to make full use of these measures," he added.