Tag: loan

MUMBAI: Deposit rates have not increased as much as lending rates in the rate tightening cycle that began in May 2022, and is reflected in the improvement in net interest margins of banks during 2022-23, a paper published by RBI said. A key reason for lag is that most banks have not revised interest rates on savings accounts.The article, published in RBI’s November bulletin, notes that lending rates came down quickly during the pandemic because of large surplus liquidity and subdued credit demand, facilitating the transmission of RBI’s...