Bank deposit rate falls by 9bps in July

Mettis Global reported that the weighted average return on bank deposits fell by 9 basis points to 3.96 per cent in July 2026, down from 4.05 per cent in June, citing the latest official data. On a yearly basis, the rate has dropped by 857 basis points from 12.53 per cent a year earlier.

The lending rate of scheduled banks came to 11.94 per cent in July, 9 basis points lower than in June. It also declined 5 basis points from the same month last year.

Once inflation is taken into account, real deposit returns stayed below zero at minus 3.51 per cent in July, compared with minus 2.99 per cent in June. The real lending rate, however, eased to 4.47 per cent from 4.99 per cent in the previous month.