August 21, 2024 (MLN): The return on bank deposits has increased by 79 basis points to 11.09% in July 2024 compared to the deposit rate of 10.29% 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 167bps compared to the return of 12.76% last year.
Meanwhile, the lending rate for all scheduled banks stood at 19.31%, down 85bps compared to June. While it fell 215bps compared to the same month of last year.
Accordingly, the banking sector spread decreased by 164bps to 823bps in July 2024 compared to a spread of 987bps 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 -11.36%, an increase of 223bps compared to last month. While it rose 522bps 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 -3.13% after an increase of 59bps compared to last month. While it rose 474bps compared to July 2023.
