Bank deposit rate plunges 111bps in Sep

October 21, 2024 (MLN): The return on bank deposits has decreased by 111 basis points to 9.54% in September 2024 compared to the deposit rate of 10.65% 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 166bps compared to the return of 11.20% last year.

Meanwhile, the lending rate for all scheduled banks stood at 18.34%, down 71bps compared to August. While it fell 183bps compared to the same month of last year.

Accordingly, the banking sector spread increased by 41bps to 880bps in September 2024 compared to a spread of 839bps last month.

The total stock of deposits has risen 17.9% to Rs30.78 trillion in a year.

However, the real deposit rate, after adjusting for inflation, stood at -8.78%, an increase of 92bps compared to last month. While it rose 1,006bps 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 0.02%, up 133bps compared to last month. While it increased 989bps compared to the same month of last year.

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