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 daeconomictimes.indiatimes.com