Bank's Interest Rates Continue To Be On Rising Trajectory In July: CareEdge

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Counting hundred rupee Indian bank notes. (Source: Usha Kunji /BQ Prime)

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CareEdge Research Report

Private sector banks and public sector banks have maintained high spreads between lending and deposit rates, with private banks seeing higher spreads until July, as banks have raised their rates amid Reserve Bank of India's tightening moves.

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The difference between the 10-year G-sec yield and the lending rates for scheduled commercial banks is likely to sustain.

Lending rates on fresh loans witnessed a rise in tandem with the repo rate, while deposit rates' rise has albeit slower has also started to pick up.

We expect the uptick in deposit rate to pick up as the credit growth has remained high and the liquidity has been narrowing in the banking system.

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