Banks unlikely to offer higher deposit rates after CRR cut
cash reserve ratio (CRR) should ensure the lenders have sufficient liquidity to meet financing demand until the end of FY25.
Bankers said slower credit growth has narrowed the gap between credit and deposits. Additionally, the ₹1.16-lakh-crore liquidity infusion through a lower CRR threshold will prevent deposit rates from climbing.
Bankers said that deposit rates are now near their cyclical peak, and special deposit mobilisation schemes may not be revised at the end of this fiscal year.
«One can safely say that deposit rates will be stable at current levels. They will be on hold with a downward bias. The liquidity infused via CRR will benefit all banks,» said PR Rajagopal, executive director of Bank of India. «Each bank will, of course, take stock of rates in different buckets noting the demand for credit.»
Credit growth in the fortnight ending November 15 slowed to 11% year-on-year, while deposits climbed 11.21% YoY, central bank data showed.
Data Science
SQL Server Bootcamp 2024: Transform from Beginner to Pro
By — Metla Sudha Sekhar, IT Specialist and Developer
Finance
A2Z Of Money
By — elearnmarkets, Financial Education by StockEdge
Web Development
Intermediate Java Mastery: Method, Collections, and Beyond
By — Metla Sudha Sekhar, IT Specialist and Developer
Strategy
ESG and Business Sustainability Strategy
By — Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader
Artificial Intelligence(AI)
Learn InVideo AI: Create Videos from Text Easily
By — Prince Patni, Software
