High real interest rate is leading to lower deposit growth rate of the banks a trend which has been prevalent since late 2014, a SBI report has said. According to the bank’s research report, despite a relatively high real interest rate, deposit rates of banks have not picked up.
“Deposits with All Scheduled Commercial Banks have remained sluggish with a meagre growth of 9.9 per cent during fiscal 2015-16 (till March, 2016),” the report said. “This has resulted in acute shortage of funds with banks for lending purposes,” it said. SBI economic research’s chief economic adviser Soumya Kanti Ghosh, who has authored the report.