RBI concerned about slow deposit growth
2 years, 1 month ago

RBI concerned about slow deposit growth

Deccan Chronicle  

Mumbai: The Reserve Bank Of India is concerned about the slow deposit growth and how banks would support double-digit credit growth amidst tightening liquidity. The issue was discussed on Wednesday when RBI governor Shaktikanta Das met managing directors and chief executive officers of public sector banks and key private sector banks. One of the issues discussed was that while credit growth has touched 18 per cent, deposit growth is languishing in single digits." As per RBI’s latest weekly data, outstanding aggregate deposits as of October 21 stood at over Rs 172.03 lakh crore, declining by Rs 60,116 crore over the fortnight.

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History of this topic

Growth Impacted By Multiple Factors, Not Just Repo Rate: Shaktikanta Das
1 week, 6 days ago

Growth Impacted By Multiple Factors, Not Just Repo Rate: Shaktikanta Das

Deccan Chronicle  

Shaktikanta Das demitted office on Tuesday after completing six years as the 25th Governor of the Reserve Bank of India. On monetary policy being too tight impacting growth while inflation continues to still remain above the central bank’s mandate despite 250 basis points increase in repo rate? Ans---The relationship between the government, the finance ministry in particular, and the Reserve …

Banking revival in 2025: Why strong liability franchises stand to gain
2 weeks, 5 days ago

Banking revival in 2025: Why strong liability franchises stand to gain

Live Mint  

Indian bank stocks are waiting for their moment in the sun. Read this | Private lenders see stress in credit cards, personal loans in Q2 Elevated deposit costs and sluggish base growth weighed heavily on net interest margins for both public and private banks. Public vs private banks Credit costs for private banks increased by 10 basis points sequentially, with …

Banks see deposits rise for the third consecutive fortnight since mid-October
3 weeks, 3 days ago

Banks see deposits rise for the third consecutive fortnight since mid-October

New Indian Express  

MUMBAI: Indian banks' intense efforts to mop up deposits have finally begun to pay off, with liabilities growing faster than assets for the third consecutive fortnight. It marks the first time in 30 months that this has happened, following a period of aggressive deposit collection by lenders since the credit-deposit growth mismatch began in the fortnight ending March 25, 2022. …

At India’s largest bank, all eyes on premium customers
1 month, 2 weeks ago

At India’s largest bank, all eyes on premium customers

Live Mint  

Mumbai: State Bank of India may be taking the higher road as it joins the scramble for customer funds without resorting to a rate war, but its outlook signals an extended industry struggle for deposit growth. India’s largest bank on Friday tempered its guidance on deposit growth to 10-11% from 12-13% for 2024-25 as customers might have now found more …

SBI Dismisses Concerns About Flagging In Banking Sector's Deposit Growth
4 months ago

SBI Dismisses Concerns About Flagging In Banking Sector's Deposit Growth

News 18  

State Bank of India, India’s largest lender and public sector bank, in its report, has dismissed the concerns about the flagging in the banking sector’s deposit growth. The report highlighted that in the Financial Year 23, the banking sector, particularly All Scheduled Commercial Banks, registered the highest absolute growth in both deposits and credit since 1951-52. Meanwhile, the credit expanded …

As Deposit Growth Slows, Banks Innovate with Alternative Funding: RBI
4 months ago

As Deposit Growth Slows, Banks Innovate with Alternative Funding: RBI

News 18  

Banks are tapping alternative sources like commercial paper and certificates of deposit as deposit growth lags credit growth, RBI August Bulletin said on Monday. This increase amid deposit growth lagging credit expansion prompted banks to rely on alternative funding sources, as per the RBI article. While unveiling bi-monthly monetary policy, Reserve Bank Governor Shaktikanta Das expressed concern over household savings …

SBI raises lending rate by 10 basis points across tenures from August 15: Will loan EMIs go up?
4 months, 1 week ago

SBI raises lending rate by 10 basis points across tenures from August 15: Will loan EMIs go up?

India TV News  

The State Bank of India, the largest state-owned bank in India, has announced an increase in its lending rates by 10 basis points across tenors, effective from August 15, 2024. Introduced in April 2016 as a replacement for the base rate system, the MCLR is used as a benchmark for setting lending rates unless specific exceptions are approved by the …

RBI keeps repo rate steady: Will there be any impact on your home loan EMIs
4 months, 2 weeks ago

RBI keeps repo rate steady: Will there be any impact on your home loan EMIs

Hindustan Times  

The Reserve Bank of India kept repo rate steady at 6.5 percent for the ninth time in a row in its Monetary Policy Committee review. This year, HDFC Bank increased home loan rates for new borrowers by 40 basis points despite repo rates being steady. For HDFC Bank, the lowest interest rate on a ₹50-lakh home loan was 8.35 per …

RBI keeps Repo rate unchanged at 6.5% for ninth consecutive time
4 months, 2 weeks ago

RBI keeps Repo rate unchanged at 6.5% for ninth consecutive time

Deccan Chronicle  

In a move reflecting its cautious approach amid ongoing economic uncertainties, the Reserve Bank of India has decided to keep the repo rate unchanged at 6.5 per cent. It decided by a majority of four members to keep the policy repo rate unchanged at 6.5 per cent. The central bank's commitment to bringing inflation down to its 4 per cent …

RBI keeps repo rate unchanged at 6.5%; Inflation, GDP growth forecast for FY25 retained
4 months, 2 weeks ago

RBI keeps repo rate unchanged at 6.5%; Inflation, GDP growth forecast for FY25 retained

Hindustan Times  

The Reserve Bank of India has decided to keep the repo rate unchanged at 6.5% for the ninth time in a row, RBI Governor Shaktikanta Das announced on Thursday, August 8, 2024. "The Monetary Policy Committee decided by a 4:2 majority to keep the policy repo rate unchanged at 6.5%. The RBI governor said that food prices are likely to …

Credit growth trajectory likely to slow down to 12-14% YoY over FY25-27, says Emkay Global
9 months ago

Credit growth trajectory likely to slow down to 12-14% YoY over FY25-27, says Emkay Global

Live Mint  

India’s banking sector is expected to face a slowdown in credit growth and with banks exhausting strategies to sustain margins, the imperative for mobilizing deposits emerges, analysts said. The credit growth trajectory is expected to slow down to 12-14% year-on-year over FY25-27E from the current 16.5% YoY, according to Emkay Global Financial Services. The overall deposit growth and more so …

‘Monetary policy actively disinflationary’: RBI keeps repo rate unchanged at 6.5%
1 year ago

‘Monetary policy actively disinflationary’: RBI keeps repo rate unchanged at 6.5%

Hindustan Times  

The Reserve Bank of India on Friday maintained its benchmark repo rate at 6.5%, keeping its focus on anchoring inflation and boosting growth. Monetary policy will remain actively “disinflationary”, RBI Governor Shaktikanta Das said after a two-day meeting of the bank’s six-member monetary policy committee. He said that the central bank’s successive policy rate hikes, a reference to increases in …

Bank of Maharashtra Becomes Best Performing Public Sector Lender In Loan, Deposit Growth in Q1
1 year, 4 months ago

Bank of Maharashtra Becomes Best Performing Public Sector Lender In Loan, Deposit Growth in Q1

ABP News  

Bank of Maharashtra became the best performer among public sector banks during the first quarter of the current fiscal year. Based on the published quarterly numbers of the public sector banks, the bank recorded a growth of 24.98 per cent in the gross domestic advances, which stood at Rs 1,75,676 crore at the end of the first quarter. The report …

Good news for bank fixed depositors! RBI hints at further FD interest rate hike
1 year, 9 months ago

Good news for bank fixed depositors! RBI hints at further FD interest rate hike

Live Mint  

The Reserve Bank of India, in its monthly bulletin released on Tuesday, said the intensifying competition among banks to expand their deposit base may force banks to increase fixed deposit rates. After 250 basis points repo rate hike by the central bank in May 2022, banks have been in a race to increase deposit rates. The central bank bulletin said …

RBI hikes repo rate. How will this impact your loan EMIs?
1 year, 10 months ago

RBI hikes repo rate. How will this impact your loan EMIs?

Hindustan Times  

In its first Monetary Policy statement of 2023, the Reserve Bank of India on Wednesday hiked the policy repo rate by 25 basis points to 6.5%. This was the sixth straight hike to the repo rate, which, in December last year, was raised by 35 basis points to 6.25%. The decision to raise the repo rate was approved by a …

RBI repo rate hike: How will it affect fixed deposits (FDs)?
1 year, 10 months ago

RBI repo rate hike: How will it affect fixed deposits (FDs)?

Hindustan Times  

In its first monetary policy decision after the Union Budget 2023, the Reserve Bank of India has hiked the repo rate by 25 basis points. With the raising of key benchmark interest rate by 25 basis points to 6.5 per cent, there will be a direct impact on both bank depositors and new loan borrowers. Currently, top banks, such as …

How RBI’s 25 bps repo rate hike could impact your loan EMIs
1 year, 10 months ago

How RBI’s 25 bps repo rate hike could impact your loan EMIs

Live Mint  

As widely speculated, the Reserve Bank of India has hiked the repo rate for the sixth time in a row, by 25 bps to 6.50% with immediate effect. After the RBI's latest repo rate hike on February 8, banks are expected to raise interest rate in retail loans. So, it's of utmost importance for a common man to know how …

DBS Bank India Hikes FD Rates, Know Your Returns Now
1 year, 10 months ago

DBS Bank India Hikes FD Rates, Know Your Returns Now

News 18  

During the last 9 months, the Reserve Bank of India has frequently increased the repo rate to control inflation. After the change, the bank is offering interest rates ranging from 2.50 per cent to 6.50 per cent for the general public and 5.25 per cent to 7.00 per cent for senior citizens. With the increment, DBS Bank India is now …

Keep an eye on these economic indicators in 2023
1 year, 11 months ago

Keep an eye on these economic indicators in 2023

Live Mint  

Global headwinds, tightening monetary policy and the lingering effects of the pandemic have combined to create a gloomy global outlook. In its December bulletin, the Reserve Bank of India said that with balance of risks being tilted towards a darkening global outlook and emerging markets appearing more vulnerable, the Indian economy needs support from domestic growth drivers. Sectoral deployment of …

RBI raises repo rate by 35bps to 6.25%, highest since March 2019
2 years ago

RBI raises repo rate by 35bps to 6.25%, highest since March 2019

Hindustan Times  

Loans and mortgages will get more expensive with the Reserve Bank of India’s Monetary Policy Committee announcing a fifth consecutive interest rate hike on Wednesday, of 0.35 percentage points, taking the policy rate to 6.25%, the highest since March 2019. RBI has taken up the policy rate by 2.25 percentage points since May, and the tone and tenor of its …

Home Loan, Car Loan EMIs to Increase as RBI Hikes Repo Rate by 35 bps; What Should Borrowers Do
2 years ago

Home Loan, Car Loan EMIs to Increase as RBI Hikes Repo Rate by 35 bps; What Should Borrowers Do

News 18  

RBI MPC Meeting December 2022: The Reserve Bank of India has increased the repo rate by 35 basis points to 6.25 per cent in its December Monetary Policy Committee meeting. Atul Monga, CEO and co-founder of BASIC Home Loan, said: “An increase in interest rates will be felt especially by the new borrowers, existing borrowers will not usually be affected …

RBI says bank credit growth accelerates to 17.2 % in September quarter: Report
2 years ago

RBI says bank credit growth accelerates to 17.2 % in September quarter: Report

Hindustan Times  

Bank credit growth improved to 17.2 per cent in the September quarter 2022 from 7 per cent in the year-ago period, reflecting pick-up in economic activities. Bank credit growth improved further to 17.2 per cent in September 2022 from 14.2 per cent a quarter ago and 7 per cent a year ago, it said. Aggregate deposits growth, which remained in …

India growth to slow to 5.9% in 2023, says Goldman Sachs
2 years, 1 month ago

India growth to slow to 5.9% in 2023, says Goldman Sachs

The Hindu  

India’s economic growth in 2023 is expected to slow to 5.9%, from 6.9% in 2022, Goldman Sachs said in its India 2023 outlook report. In the second half, growth is likely to re-accelerate as global growth recovers, drag from net exports diminishes and investment cycle picks up,” Goldman Sachs said. Emphasising that India’s current account deficit would remain wide given …

Explained | RBI’s concerns on slow deposit growth
2 years, 1 month ago

Explained | RBI’s concerns on slow deposit growth

The Hindu  

The story so far: The Governor, Deputy Governor and a few other senior officials of apex banking regulator, the Reserve Bank of India, met MD and CEOs of public and certain private sector banks on November 16. Acknowledging the role played by private commercial banks in supporting economic growth during the pandemic and in the ongoing financial market turmoil, the …

Banks increase EBLRs by 190 bps in tandem with RBI's repo rate hike
2 years, 1 month ago

Banks increase EBLRs by 190 bps in tandem with RBI's repo rate hike

The Hindu  

All major banks have increased their external benchmark-based lending rates by 190 basis points in tandem with the hike in the Reserve Bank's policy repo rate since May this year, though they have been slow in raising the deposit rates. The RBI's Monetary Policy Committee, which makes recommendations to the central bank regarding interest rates, is set to meet again …

Liquidity Crunch Is Real. How Scheduled Commercial Banks Are Coping As Credit Growth Outpaces Deposit Growth
2 years, 1 month ago

Liquidity Crunch Is Real. How Scheduled Commercial Banks Are Coping As Credit Growth Outpaces Deposit Growth

ABP News  

A video is doing the rounds of social media, showing an official of Canara Bank, a Public Sector Bank, selling fixed deposits like a hawker in the streets of Mumbai suburbs in order to build up bank deposits. Both Canara Bank and HDFC Bank are actually on the ball as the slow deposit growth against the double-digit growth is creating …

Indian Bank hikes interest rates on fixed deposits (FDs) by up to 90 bps
2 years, 1 month ago

Indian Bank hikes interest rates on fixed deposits (FDs) by up to 90 bps

Live Mint  

Indian Bank, a leading public sector lender, increased interest rates on fixed deposits below ₹2 crore. Following the modification, the bank increased interest rates on deposits maturing in 1 year to 5 years or above by up to 90 bps. Indian Bank is now offering interest rates on deposits that mature in 7 days to over 5 years that range …

Tightening liquidity may force Indian banks to compete harder for deposits
2 years, 3 months ago

Tightening liquidity may force Indian banks to compete harder for deposits

Live Mint  

Indian banks may be forced to compete harder to boost deposits amid tightening liquidity and rising credit demand ahead of the festive season, analysts warned. With excess liquidity in the banking system over the last couple of years on account of the cash infused by the RBI during the pandemic, banks chose to rely on raising funds from money markets …

These tax saving fixed deposits promise over 8% returns to senior citizens; details here
2 years, 3 months ago

These tax saving fixed deposits promise over 8% returns to senior citizens; details here

Firstpost  

Fixed deposit schemes are one of the safest investment options for elderly people. Some banks are offering over 8 per cent returns on tax-saving fixed deposits of 5 years. But, before investing in the scheme, you must note that the tax-saver fixed deposits have a lock-in period of 5 years. Here is all you need to know about some tax-saver …

Credit demand is gathering momentum; Will deposits catch up with the pace?
2 years, 4 months ago

Credit demand is gathering momentum; Will deposits catch up with the pace?

Live Mint  

As the impact of the pandemic continues to fade away, credit offtake in the financial system has been gathering momentum. According to the CMIE report, outstanding personal loans increased by 1.5 per cent in June 2022 compared to the previous month. Credit growth in the large industries segment was 3.3 per cent, compared to a 4.8 per cent contraction in …

Home Loan EMIs to Increase as RBI Hikes Repo Rate; Know How Much you Have to Shell Out
2 years, 4 months ago

Home Loan EMIs to Increase as RBI Hikes Repo Rate; Know How Much you Have to Shell Out

News 18  

The Reserve Bank of India has increased the repo rate by 50 basis points to 5.4 per cent on August 5. India’s central bank has also remained focused on withdrawal of accommodative stance to maintain inflation within the target while supporting growth.”RBI’s decision to raise the repo rate is in response to the headwinds being faced by Indian economy including …

SBI Fixed Deposit Interest Rates Hiked for These Tenors; Check New FD Rates Here
2 years, 6 months ago

SBI Fixed Deposit Interest Rates Hiked for These Tenors; Check New FD Rates Here

News 18  

SBI Fixed Deposit Interest Rates: A week after the Reserve Bank of India increased its repo rates for the second straight time in a row, India’s largest pubic sector lender State Bank of India hiked its interest rates on fixed deposits by up to 20 basis points. For tenures of one year to less than two years, the rates have …

RBI repo rate hike effect: These banks raised rates on lending, deposits
2 years, 7 months ago

RBI repo rate hike effect: These banks raised rates on lending, deposits

Live Mint  

Right after the Reserve Bank of India raised India's repo rate by 40 basis points, the banking sector mimicked the same by increasing interest rates in lending and deposit schemes. Here's a list of banks that have raised their interest rates on either lending benchmarks or fixed deposits or savings after RBI's repo rate hike. It said on its website, …

Impact of RBI's repo rate hike on borrowers, investors and the economy
2 years, 7 months ago

Impact of RBI's repo rate hike on borrowers, investors and the economy

Business Standard  

In an unscheduled press briefing yesterday, RBI Governor Shaktikanta Das has said that the Monetary Policy Committee’s off-cycle meet had unanimously voted to hike rates.The rationale behind this decision was the upside risks posed by global factors to India’s inflation trajectory. Meanwhile, the marginal standing facility rate and the Bank Rate stand adjusted to 4.65 per cent.However, the Monetary Policy …

Monster inflation forces RBI to increase repo rate
2 years, 7 months ago

Monster inflation forces RBI to increase repo rate

Deccan Chronicle  

Mumbai: In a surprise move, the Reserve Bank of India has increased its key interest rate by 0.4 per cent or 40 basis points and decided to hike cash reserves that lenders are expected to park with the central bank by 0.5 per cent or 50 basis points. The increase in repo rate — the rate at which RBI lends …

Shares inch up as RBI keeps rates steady to support growth
2 years, 8 months ago

Shares inch up as RBI keeps rates steady to support growth

Hindustan Times  

Shares edged higher on Friday after the central bank kept its key lending rate unchanged at a record low, opting to support post-pandemic economy growth despite rising inflation due to the Russia-Ukraine war. The monetary policy committee of the Reserve Bank of India held the lending rate, or the repo rate, at 4% and voted to keep its monetary policy …

Bank Credit Rises 5.67%, Deposits Up 10.63%, RBI Data Shows
4 years, 1 month ago

Bank Credit Rises 5.67%, Deposits Up 10.63%, RBI Data Shows

News 18  

Bank credit grew by 5.67 per cent to Rs 104.04 lakh crore, while deposits increased by 10.63 per cent to Rs 143.80 lakh crore in the fortnight ended November 6, according to RBI data. In the previous fortnight ended October 23, 2020, bank credit had risen by 5.06 per cent and deposits by 10.12 per cent. On a year-on-year basis, …

Bank Credit Rises 5.15% in Fortnight Ended September 25: RBI Data
4 years, 2 months ago

Bank Credit Rises 5.15% in Fortnight Ended September 25: RBI Data

News 18  

Bank credit grew by 5.15 per cent to Rs 102.72 lakh crore, and deposits rose by 10.51 per cent to Rs 142.64 lakh crore in the fortnight ended September 25, according to RBI data. In the previous fortnight ended September 11, 2020, bank credit had increased by 5.26 per cent to Rs 102.24 lakh crore, and deposits surged by 11.98 …

Bank Credit Grows 5.52% in Fortnight Ended Aug 14: RBI Data
4 years, 3 months ago

Bank Credit Grows 5.52% in Fortnight Ended Aug 14: RBI Data

News 18  

Bank credit grew 5.52 per cent to Rs 102.19 lakh crore and deposits increased 11.04 per cent to Rs 140.80 lakh crore in the fortnight ended August 14, according to RBI data. In the previous fortnight ended July 31, 2020, bank credit grew 5.51 per cent while deposits witnessed a growth of 11.11 per cent. On a year-on-year basis, non-food …

Bank Credit Grows 5.51% and Deposits 11.11%, Shows Latest RBI Data
4 years, 4 months ago

Bank Credit Grows 5.51% and Deposits 11.11%, Shows Latest RBI Data

News 18  

Bank credit and deposits grew 5.51 per cent and 11.11 per cent to Rs 102.65 lakh crore and Rs 141.61 lakh crore, respectively, in the fortnight ended July 31, according to the latest data from the RBI. On a year-on-year basis, non-food bank credit growth was at 6.7 per cent in June 2020, nearly the same as in May 2020 …

RBI Keeps Repo Rate Fixed amid Rising Inflation as Real GDP Growth to Remain Negative in FY21
4 years, 4 months ago

RBI Keeps Repo Rate Fixed amid Rising Inflation as Real GDP Growth to Remain Negative in FY21

News 18  

The Reserve Bank of India's Monetary Policy Committee has left the key lending rates - repo rate and reverse repo rate - unchanged, RBI Governor Shaktikanta Das announced on Thursday as the central bank predicted real GDP growth to remain negative for financial year 2020-21. Continuing with the accommodative stance, Das said that the monetary policy committee decided to keep …

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