April 22, 2025 (MLN): The return on bank deposits has decreased by 46 basis points to 5.01% in March 2025 compared to the deposit rate of 5.46% 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 538bps compared to the return of 10.39% last year.
Meanwhile, the lending rate for all scheduled banks stood at 12.44%, up 4bps compared to February. While it fell 830bps compared to the same month of last year.
Accordingly, the banking sector spread increased by 50bps to 744bps in March 2025 compared to a spread of 694bps 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 208bps compared to last month. While it rose 1,296bps 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 341bps compared to last month. While it increased 814bps compared to the same month of last year.
