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 -5.36%, a decrease of 313bps compared to last month. While it rose 1,141bps 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%, decline of 501bps compared to last month. While it increased 622bps compared to the same month of last year.

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