Bank deposit rate falls by 112bps in Feb

March 19, 2025 (MLN): The return on bank deposits has decreased by 112 basis points to 5.58% in February 2025 compared to the deposit rate of 6.69% 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 436bps compared to the return of 9.94% last year.

Meanwhile, the lending rate for all scheduled banks stood at 12.46%, down 29bps compared to January. While it fell 800bps compared to the same month of last year.

Accordingly, the banking sector spread increased by 83bps to 688bps in February 2025 compared to a spread of 605bps last month.

The total stock of deposits has risen 19.10% to Rs30.6 trillion in a year

However, the real deposit rate, after adjusting for inflation, stood at -5.36%, a decrease of 89bps compared to last month. While it rose 1,468bps 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 0.19%, declined of 196bps compared to last month. While it increased 971bps compared to the same month of last year.

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