Just days after lowering the deposit rates for small savers — under Rs 10 crore in savings deposits — by 5 bps to 2.70 per cent per annum, the State Bank on Tuesday increased the savings deposit rates by 30 bps for large accounts.

The bank said the new pricing of 30 bps more on deposits is applicable for Rs 10 crore and above and is effective from October 15.

Banks have been witnessing a flight of money to other asset classes even as they were lending more.

For many months, deposit growth has not been keeping pace with credit growth which in the first half averaged at 14.8 per cent, while deposits have been much lower at 9.5 per cent only.

Axis Bank loan rate up

Axis Bank has increased the marginal cost of funds based lending rates (MCLR) by 25 basis points across tenors with immediate effect, the bank said on Tuesday.

The lender, in a communication on its website, stated that the benchmark one-year MCLR is up by 25 basis points to 8.35 per cent with effect from October 18, 2022.