Bank deposit rate falls by 136bps in Jan

February 19, 2025 (MLN): The return on bank deposits has decreased by 136 basis points to 6.12% in January 2025 compared to the deposit rate of 7.48% 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 448bps compared to the return of 10.60% last year.

Meanwhile, the lending rate for all scheduled banks stood at 12.74%, down 119bps compared to December. While it fell 823bps compared to the same month of last year.

Accordingly, the banking sector spread increased by 16bps to 662bps in January 2025 compared to a spread of 646bps 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 20bps compared to last month. While it rose 1,481bps 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 111bps compared to last month. While it increased 999bps compared to the same month of last year.

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