Bank deposit rate falls by 12bps in Apr

May 21, 2025 (MLN): The return on bank deposits has decreased by 12 basis points to 4.90% in April 2025 compared to the deposit rate of 5.01% 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 541bps compared to the return of 10.31% last year.

Meanwhile, the lending rate for all scheduled banks stood at 12.77%, up 38bps compared to March. While it fell 828bps compared to the same month of last year.

Accordingly, the banking sector spread increased by 49bps to 787bps in April 2025 compared to a spread of 738bps 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 -0.96%, improving by 127 basis points (bps) from -2.23% in the previous month and rising by 1,581 bps compared to -16.77% in the same month last year.

Despite the improvement, depositors continue to lose money in real terms amid one of Asia’s highest inflation rates.

The real lending rate stood at 6.91%, up by 171 bps from 5.20% last month and a sharp increase of 1,294 bps compared to -6.03% in the corresponding month of last year.

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