Home
Storia in 1 fonti
Deposit rates fall sharply by 30 bps in April as banks move to protect margins
Indian banks aggressively cut fresh deposit rates in April 2026 to protect margins, with the weighted average falling to 5.77%. Simultaneously, lending rates saw a slight increase, widening the gap and signaling efforts to rebuild net interest margins. This trend, however, raises concerns about the equitable transmission of monetary policy to borrowers.
Raccontata da
economictimes.indiatimes.com
Timeline cronologica
- ·
Deposit rates fall sharply by 30 bps in April as banks move to protect margins
Indian banks aggressively cut fresh deposit rates in April 2026 to protect margins, with the weighted average falling to 5.77%. Simultaneously, lending rates saw a slight…
- ·
Share of term deposits below 7% jumps as banks reprice liabilities
Bank term deposits under 7% surged to 61.8% in FY26 due to 125 basis points of policy rate cuts. Depositors shifted to longer maturities, with one-to-three-year tenures rising to…
- ·
Two out of every three bank loans in India carry interest rates below 9%
Indian banks are witnessing a significant shift as nearly two-thirds of credit now carries sub-9% interest rates, a consequence of aggressive RBI rate cuts. This trend, while…