Deposit rates not to rise despite all-time high credit-to-deposit ratio

Banks have a large pool of government bonds that are much above the SLR of 19.5%

The credit-to-deposit (CD) ratio is at an all-time high of 79 per cent with bank loan growth touching 15 per cent. But, that may not trigger any sharp rise in bulk deposit rates as banks have a large pool of government bonds that are much above the statutory liquidity ratio (SLR) of 19.5 per cent.

They could sell part of the excess SLR to generate liquidity to finance rising credit demand. Bulk deposit is amount raised in excess of Rs 1 crore from one party, mostly institutions, business establishments, and high-net-worth individuals.

Besides excess SLR resources, subdued fund raising by finance companies,