Indian banks are unlikely to raise deposit rates further due to slowing credit growth and a recent cash reserve ratio cut. The influx of liquidity ensures sufficient funds for lending, stabilizing deposit rates near their peak. Any rate reduction hinges on the central bank lowering the benchmark repo rate, potentially triggered by easing inflation.
Banks unlikely to reduce deposit rates despite RBI easing
Following the latest repo rate decrease, bankers foresee only slight adjustments to deposit rates. The landscape, characterized by sluggish savings yields and elevated credit-deposit ratios,