Despite deposit rate hikes, growth in deposits hasn’t increased yet. While some banks believe that deposit rates may have reached a peak, perhaps a few more lenders may have to hike further to lure funds
Regulator-market discord on rate transmission persists. Fresh term deposits show full 2.5% repo rate hike. Interest margins squeezed, WADTDR at 6.62% in March. WALR for commercial banks at 9.37%.
The weighted average lending rate (WALR) on fresh rupee loans of the commercial banks stood at 9.37 per cent in March 2024 (9.36 per cent in February 2024). It rose 13 basis points or bps (one basis point is 0.01 percent) over the last one year. Excluding the merger impact of HDFC with HDFC Bank, the WALR on outstanding rupee loans was at 9.85 per cent in March 2024 (9.83 per cent in February 2024. It rose 13 bps over the last one year.
Non-bank lenders that depend on banks for a significant portion of their borrowings are now turning to other more expensive options for funds, including deposits and bonds
India Business News: RBI highlights incomplete interest rate transmission affected by rising deposit rates. Bank of India decreases home loan rates. Deputy governors addre