Deposit Rates

Credit growth in the economy, which had previously been driven primarily by retail credit, has tapered off from its peak

The move comes at a time when banks are scrambling for deposits amid healthy loan growth

The RBI is also concerned that the banks have turned to bulk deposits and certificates of deposit to mobilise funds, as retail deposits (both savings and term deposits) have become stagnant

Shows only 36% bank accounts are held by women

RBI governor, deputy governor met CEOs of public sector banks, private banks

State Bank of India (SBI) Chairman Dinesh Kumar Khara has said that deposit rates have peaked and will move southward in the medium term. The country's largest lender also said the RBI may start easing the interest rate cycle from the third quarter of the current financial year. Last week, the Reserve Bank of India (RBI) left its key interest rates unchanged for the eighth time in a row, keeping the focus on inflation amid robust economic growth. "We are hoping that in the third quarter starting from October, perhaps there would be some possibility of inflation trajectory moving towards 4 per cent, and that will be the right time when we can expect some interest cut (from RBI)," he said. Some central banks from advanced economies like Switzerland, Sweden, Canada and the Euro area have begun their rate easing cycle during 2024. On the other hand, market expectations of a rate cut by the US Federal Reserve, which was higher earlier, have moderated subsequently. As far as the intere

Aims to increase share of short-term retail deposits

The term deposits upto Rs two crore are categorised as retail deposits and those above it are considered as bulk deposits

Bankers have stated that rates have been adjusted in some tenures to align with market rates, given the competition to attract more money into deposits

For daily balances between Rs 25 lakh to Rs 2 crore, bank will pay 7.5 per cent (per annum) as against 7.0 per cent rate

MSMEs showing signs of stress, says A Manimekhalai, managing director and chief executive, Union Bank of India

The one year median Marginal Cost of Fund based Lending Rate (MCLR) of SCBs increased from 8.55 per cent in March 2023 to 8.60 per cent in April 2023

According to ICICI Securities, with the credit-deposit ratio at 75.3 per cent, this could put further pressure on deposit rates

Lender announces decision after central bank last week raised the repo rate to 6.50%

Revisions mainly introduced for high-value deposits of Rs 2 cr and above; Continuous rate hikes over time raise concern about sustainability of healthy net interest margins

Liquidity conditions will also not return to surplus as seen in the pandemic years, which will maintain fundamental pressure on domestic interest rates

FCNR(B)/RFC depositors will get an interest rate up to 5 per cent on their term deposits

Banks have made a beeline to increase rates on their deposits as liquidity in the system has tightened and the credit growth in the system has remained consistently high

Naren said after a long time the need for money in the deposit market has come and we see hikes in bank deposit rates

It is leveraging the digital ecosystem, focusing on acquisition of corporate salary accounts, and also cross-selling products to existing clients