One basis point is 0.01 percentage point.Replying to a question by reporters during the post-monetary policy press conference, Malhotra said deposit rates should reflect "When inflation is so low and going forward also it's going to be low..., then even though the nominal interest rates may seem to be low...real interest rates today are quite high. So, that's true not only for borrowers but also for savers. And so, we do expect that going forward, especially after this RBI data showed that the cumulative 1 ...

Core Insights - The weighted average cost of fresh rupee term deposits has increased for the first time in six months, indicating a potential bottoming out of deposit rates and tighter liquidity as credit growth picks up [1][11] - The average rate on fresh term deposits rose to 5.60% in September 2025 from 5.56% in August, marking the first increase since March [2][11] - Analysts suggest that deposit rates are unlikely to decrease significantly from this point due to rising credit growth and competition among banks for funds [10][12] Deposit Rates and Trends - The increase in the weighted average cost of fresh term deposits by four basis points suggests that bank deposit rates may be at their lowest point in the current cycle [1][11] - Fresh term deposits have decreased from a peak of 6.65% in March, influenced by a 100 basis points repo cut by the RBI this year [6][11] - The average outstanding rupee term deposit rate fell slightly to 6.82% in September 2025 from 6.87% in August [9][12] Credit Demand and Competition - An increase in credit demand is contributing to heightened competition among banks for funds, as credit growth is improving following GST rate cuts [7][8][11] - Bankers noted that there has been an uptick in bulk deposit rates recently, which may have contributed to the rise in average term deposit rates [8][11] - Bank margins are recovering after a decline earlier in the fiscal year, with some banks already reporting improvements [9][12]