Monday, August 31
Mumbai: A sharp drop in deposit rates, competition from other investment avenues, and a high credit-deposit (CD) ratio is likely to limit scope for further reduction in deposit rates, said bank executives.Bankers expect only a 10-to-15 basis points reduction in deposit rates following the 25 basis points reduction in the repo rate by the central bank last week.Inability to pass on rate cuts fully will delay improvement in bank margins, according to bankers. One basis point is 0.01 percentage point.125821080 The weighted average deposit rate on fresh term deposits has fallen 98 basis points to 5.57% since the current rate-cutting cycle began in February. With the latest 25 basis-point cut by the Reserve Bank of India (RBI), the benchmark repo rate is now down by 125 basis points.However, ba
