FD rates - NewNerve

The CASA ratio, which measures the share of low-cost CASA deposits, experienced a decline year-on-year by 40-730 basis points (bps) for banks reporting their Q4 FY24 earnings. This decline occurred despite sustained high deposit rates due to tight liquidity conditions and robust demand for credit, particularly in retail and unsecured loans. Here are some key points: Private Banks vs. PSU Banks: As of December 2023, private banks saw a year-on-year decline of 393 bps to 38.7% in CASA ratios, while PSU banks declined by 187 bps to 38.5%. This decline impacted lenders’ margins. Sequential CASA ratios remained stable or slightly improved in the final quarter due to increased deposit accumulation and proactive efforts by banks to attract granular deposits. Kotak Mahindra Bank...

Punjab National Bank (PNB), one of India's leading public sector banks, has recently announced a revision in its fixed deposit (FD rates) interest rates. The bank has implemented rate cuts of up to 15 basis points (bps) across various tenures. This move comes as a response to the evolving market conditions and aims to align the bank's offerings with the prevailing interest rate environment. Let's delve deeper into the revised FD rates offered by PNB. Revised FD Rates: Effective from April 12, 2024, PNB has adjusted its FD interest rates for different categories of depositors. The revised rates are as follows: Regular Citizens: For regular citizens, PNB now offers FD interest rates ranging from 3.50% to 7.25%. The rates vary based on the tenure of the fixed deposit. Senior Citize...

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Declining CASA Ratios: A Deep Dive into Banking Trends, in Q4

Punjab National Bank (PNB) Revises FD Rates, Implements Rate Cuts of up to 15bps