Bank deposit rate falls 44bps in Aug

September 23, 2024 (MLN): The return on bank deposits has decreased by 44 basis points to 10.65% in August 2024 compared to the deposit rate of 11.09% last month, according to the latest official data.

On a yearly basis, the weighted average rate paid for deposits by the banking sector has decreased by 20bps compared to the return of 10.85% last year.

Meanwhile, the lending rate for all scheduled banks stood at 19.04%, down 27bps compared to July. While it fell 203bps compared to the same month of last year.

Accordingly, the banking sector spread increased by 16bps to 839bps in August 2024 compared to a spread of 823bps last month.

The total stock of deposits has risen 17.9% to Rs30.78 trillion in a year

However, the real deposit rate, after adjusting for inflation, stood at -9.70%, an increase of 111bps compared to last month and 884bps compared to the same month of last year.

Despite the increase, depositors are still losing money after adjusting for one of Asia's highest inflation.

The real lending rate stood at -1.31%, an increase of 128bps compared to last month and 701bps compared to the same month of last year.

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