SBI increased its deposit rates by upto 80 bps on select maturities, with effect from October 22
With the share of current and savings account (CASA) deposits at 45 per cent in the banking system, a 190 basis points (bps) increase in repo rate could at best translate into a 105-bps increase in deposit rates. This is because it is only the 55 per cent of the term deposits that would need rate adjustments, resulting in a less than full adjustment of deposit rates to repo rate, a report by State Bank of India’s (SBI) economic research department said on Monday.
“Any deposit rate increase beyond that will be an additional one,” the report said.
First Published: Oct 31 2022 | 5:04 PM IST