The pressure to garner deposits saw rates inching up in September – the first time since the Reserve Bank of India (RBI) began its rate cut cycle in February.

According to RBI’s monthly data, the weighted average rate on fresh rupee term deposits of scheduled commercial banks have inched up by 4 basis points (bps) on month, with rates of public sector banks up by 3 bps while private sector was up 2 bps.

Analysts believe that with credit growth picking up, deposit rates seemed to have bottomed out. “The rates on fresh deposits seems to have bottomed out unless there are further cuts in repo rates or a slowdown in credit growth,” Anil Gupta, senior vice president and co-group head of financial sector ratings at ICRA said.

At the same, RBI’s 100 bps rate cut is being reflected in the c

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