The bank offers a comprehensive suite of banking products and services, catering to a diverse clientele. Its operations are broadly segmented into several key areas: corporate banking, commercial banking, branch and retail banking, retail assets, and treasury and financial markets operations. This diversification allows RBL Bank to serve a wide range of customers, from large corporations to individual consumers.
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Private banks reduce their CD (cash reserve) ratios in response to a strain in liquidity – Banking & Finance News
Private banks in India have been reducing their credit-deposit (CD) ratios in recent quarters as they prioritize deposit growth over advances amidst tight liquidity conditions. The average CD ratio, also known as the loan-to-deposit ratio (LDR), has decreased to 90.74% in the December quarter of the current financial year, down from 94.4% in the same period a year ago. Private sector banks, such as HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Yes Bank, and IDFC First Bank, have all seen a year-on-year decline in their CD ratios.
HDFC Bank, the largest private lender, has seen a significant decline in its CD ratio to 98.2%, down from 110.5% in the same quarter a year ago. The bank is aiming to bring its CD ratio back to pre-merger levels with HDFC Ltd. IDFC First Bank, Yes Bank, and RBL Bank have also seen significant declines in their CD ratios.
Private banks have been aggressively expanding their loan portfolios, but with deposit growth slowing, they are now prioritizing building a stronger deposit base and scaling back loan growth. Banks are also intensifying their efforts to enhance their liability franchises by offering higher rates on term deposits and sourcing funds through certificates of deposit, albeit at a higher cost.
The CD ratio is a key metric that indicates a bank’s liquidity and credit risk. A high CD ratio can pose liquidity and credit risk for a lender. The Reserve Bank of India has expressed concerns about high LDRs and has asked lenders to narrow the gap between credit and deposit growth. With deposit competition remaining aggressive, banks are working to improve their CD ratios to align with regulatory expectations and reduce their reliance on borrowings, which can increase funding costs and compress net interest margins.
Capital One Cuts Interest Rates on Savings Accounts, Leaving Many Disappointed
The Reserve Bank of India (RBI) has recently made significant changes to its policy, which has led several major banks to reduce their savings account interest rates. This has a significant impact on millions of customers who rely on their savings accounts for passive income. In this article, we will break down the key information, including the reasons behind the rate cut, the banks affected, the new interest rates, and what customers can do to maximize their returns.
Reasons for the Rate Cut:
The RBI has cut the repo rate by 25 basis points to 6.25% to boost economic activity. This reduction in the repo rate makes borrowing cheaper, and banks lower their lending rates. However, to balance their finances, banks also reduce deposit rates, affecting savings account holders directly.
Banks Affected:
RBL Bank, Kotak Mahindra Bank, and more have reduced their savings account interest rates.
Interest Rate Drop:
The interest rates on savings accounts have been reduced by up to 1% on various account balances.
Effective Date:
The new interest rates will take effect on different dates, ranging from February 15, 2025, to February 17, 2025.
Impact on Customers:
The reduction in interest earnings on savings accounts will significantly affect customers, leading to reduced passive income, and prompting them to look for alternative investment options.
Alternatives:
Savings account holders can explore alternative investments such as:
1. Fixed Deposits (FDs)
2. Government Schemes (Public Provident Fund, Senior Citizens’ Savings Scheme, and National Savings Certificate)
3. Debt Mutual Funds
4. High-Interest Digital Savings Accounts (Airtel Payments Bank, Jupiter, and Fi Money)
5. Corporate Fixed Deposits (Bajaj Finance, for example)
The article concludes by providing answers to frequently asked questions, including:
1. Why did my bank lower my savings interest rate?
2. Should I move my money out of savings accounts?
3. Are there banks still offering high savings interest?
4. Will FD interest rates also drop?
5. Where can I check updated interest rates?
Overall, the article aims to provide individuals with simple and easy-to-understand information on the recent changes to savings account interest rates and the alternatives available to maximize their returns.
In a unique collaboration, RBL Bank partners with chess grandmaster D. Gukesh to promote financial expertise through its latest campaign.
RBL Bank has launched a new campaign featuring World Chess Champion D. Gukesh, highlighting the connection between chess and financial planning. The campaign showcases how strategic thinking, like in chess, can lead to long-term financial success and security. In the advertisement, Gukesh demonstrates how the principles of strategy that made him a world-class chess player can be applied to financial planning. He guides viewers through the process of making bold, informed financial decisions with RBL Bank’s expertise and personalized solutions.
The campaign emphasizes the importance of making informed financial decisions, much like making calculated moves in chess. It encourages individuals to take charge of their finances and emphasizes the value of careful planning, smart choices, and guidance from a trusted financial institution. The campaign targets individuals seeking a strategic partner in their financial journey, highlighting RBL Bank’s commitment to providing the necessary tools and expertise to secure their future. The campaign encourages viewers to think strategically about their financial decisions and to consider RBL Bank as a trusted advisor in their financial journey.
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