Deposit Rates

ICICI Bank has increased senior citizen retail deposit rates to 7.2% for deposits below Rs 3 crore, even as policy rates soften and loan growth outpaces deposit mobilisation across the banking sector

Banks have started passing on the 100-basis point repo rate cut by the Reserve Bank of India over the past three policy meetings

The Reserve Bank of India has already cut its key repo rate by 100 basis points in an effort to jumpstart growth in the economy

SBI has reduced interest rates on short-term deposits under ₹3 crore by 15 basis points across tenors, with total cuts in FY26 so far adding up to 60 basis points

High CD ratio, LCR norms, and possible increase in deposit insurance to weigh on banks' decisions

Indusind raises nearly Rs 15,000 via CDs this week with PSBs take a major chunk

The competition for deposits is expected to remain intense as banks focus on increasing deposit growth and prevent it from constraining credit off-take

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