He doesn’t want the savings rate deregulated as long as there is a cash shortage – like right now. And going by that, he says that net-net, the savings rate will come down. I imagine it is true, and that savings rate junkies must consider that liquid funds currently return over 7% and there is really no reason to put lots of money in savings accounts. Getting (taxable) higher interest on savings accounts will only marginally help a few people; having said that the interest should be market determined, not kept at a constant 3.5%. And in the same way banks should be free to charge for services (ATM, cheques etc.) With competition, the nickel-and-diming might reduce, but as you see in the US, it still happens.
As a bank, HDFC Bank has had some insane growth rates – 30%+. Sorta like Axis. It still gets about 25 trailing P/E, which while being high for a bank, is probably ok for HDFC Bank given the strong growth.