Lenders raised deposit rates by an average 96 basis points through FY24 despite the Reserve Bank of India (RBI) holding policy rates steady since February 2023, a State Bank of India research report said this week, pointing to industry-wide efforts at deposit mobilisation to meet sustained credit demand amid shrinking liquidity.One basis point is a hundredth of a percentage point. Credit demand outpaced deposit growth, prompting lenders to raise rates. Bank credit rose 20.2% as against 13.5% rise deposits for FY24, said the SBI report. It said the weighted average domestic term deposit rates (WADTDR) on outstanding deposits rose 96 bps last fiscal year. It further pointed out that the…
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Credit demand, low liquidity boost deposit rates at banks
