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Deposit Rate Hike: In 2023, you can get more returns by keeping deposits in banks. Banks may have to increase interest rates on deposits to raise cash in view of the increasing demand for loans. The Reserve Bank of India, the regulator of the banking sector, has said these things in one of its reports.
Growing demand for loans
Regarding the trends and progress of the banking sector, RBI has said in its report that during 2021-22, there has been a huge increase in the demand for loans, but the pace of deposit growth has slowed down. According to RBI data, deposits have increased at the rate of only 9.9 percent, while the demand for loans has increased at the rate of 17.5 percent.
improving the performance of banks
The huge increase in credit growth rate has come from private banks. After the Corona epidemic, the performance of the Indian bank has been excellent, as well as the NPA has also decreased. When the economy is picking up pace, the demand for loans has also increased. That’s why banks are continuously increasing the deposit rates. And in the coming days, they will have to increase the deposit rates even more so that they can raise cash. In five monetary policy meetings from May 4, 2022, the RBI has increased the repo rate by 2.25 percent, which has increased from 4 percent to 6.25 percent. After increasing the repo rate of RBI, banks have also increased the deposit rates but they have not increased in the same proportion as the loan rates have been increased.
HDFC Bank increased deposit rates
HDFC Bank, the country’s largest private bank, has decided to increase the interest rates on bulk fixed deposits. The bank has increased the interest rates on FDs from Rs 2 to Rs 5 crore, which has come into effect from December 27, 2022. If the bank will give 7 percent interest on FDs with a period of 3 to 5 years, then senior citizens will get 7.50 percent interest. 7.15 percent interest will be given on FDs with a period of 21 months to 2 years.
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