Bank deposit rates: How the tide turned, in charts1 min read 09 May 2023, 07:41 PM IST
Since May 2022, deposit rates have increased 113 basis points (bps), compared to 100 bps for loan rates, a Mint analysis shows.
Banks are increasingly paying more on deposits, reversing months of their trend of making loans costlier in response to repo rate hikes but slacking away on rewarding savers. Until December, repo rate hikes by the Reserve Bank of India (RBI) had been felt much more on the lending side than the deposits side, but depositors began getting their due in the March-ended quarter. The RBI had started hiking interest rates in May 2022, and the cumulative increase till February was 250 basis points (bps). Mint explains:
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