Rate cycle turns as commercial banks hike fixed deposit rates

Commercial banks in India have revised their deposit rates upward by 5-15 bps in an indication that the interest rate cycle has turned amid uptick in loan demand

Commercial banks in India, including State Bank of India and HDFC Bank, have revised their deposit rates upward by 5-15 bps in an indication that the interest rate cycle has turned amid uptick in loan demand.

Since the Reserve Bank of India’s monetary policy on February 10, four banks have revised their deposit rates — UCO Bank and Central Bank of India — apart from SBI and HDFC Bank. While banks have hiked deposit rates, any increase in lending rates is unlikely to happen anytime soon, which could depend on the monetary policy stance, bankers said.

SBI, the country’s largest lender, revised