Finsamudra Desk
Senior citizen FD yields near 8% even as RBI holds the repo rate unchanged, signalling a liquidity squeeze rather than a policy-driven rate move.
Bandhan Bank has raised its Fixed Deposit rates by up to 20 basis points, taking senior citizen yields to nearly 8%. The move comes without any change from the RBI, which has kept the national repo rate unchanged.
The rate hike reflects a deposit mismatch building inside the banking sector. Credit growth is running fast as consumers and corporations borrow at record pace, forcing banks to source more cash to fund new loans.
At the same time, retail investors are moving money out of savings accounts and into mutual funds, SIPs, and equities, reducing the deposit base banks rely on to fund lending.
With loan growth outpacing deposit collection, banks are turning to higher FD rates as a tool to pull retail liquidity back into the banking system.
For DSAs and connectors, a deposit-liquidity squeeze at the bank level can translate into tighter loan disbursal timelines and more selective underwriting, even when credit demand from borrowers stays strong.
Higher FD rates also change the borrowing math for lenders: banks paying more to raise deposits face pressure on net interest margins, which can eventually influence loan pricing and the incentives lenders offer distribution partners.
More on Bandhan Bank
Sources
Finsamudra Desk
In a decisive regulatory filing aimed at stabilizing institutional market sentiment, Equitas Small Finance Bank Limited (NSE: EQUITASBNK) announced that its Board of Directors has approved the appointment of Whole-Time Executive Director Balaji Nuthalapadi as Interim Chief Executive Officer (CEO).
Banking3 min read
Finsamudra Desk
In a high-profile executive onboarding that signals the institutional maturation of India’s new-age MSME lending sector, Saarathi Finance has announced the appointment of veteran financial services leader Alok Aggarwal as President & Group Head.
Banking3 min read
Finsamudra Desk
In a significant leadership transition reflecting the expanding scale of the Hinduja Group’s retail financial services franchise, Hinduja Housing Finance Limited (HHF) has announced the appointment of Vivek Kannan as its new Chief Executive Officer (CEO).
Banking3 min read
Finsamudra Desk
In one of the most extensive leadership realignments in Indian capital markets this year, Motilal Oswal Financial Services Limited (MOFSL) has announced a coordinated restructuring across its three highest-growth engines: Alternatives, Wealth Management, and Private Wealth Management.
Banking3 min read
Get the Morning Brief
The same daily intelligence 30,000+ CXOs, DSAs and finance professionals follow on LinkedIn, with the Finsamudra take.
-800x450.jpg&w=3840&q=75)
-800x450.jpg&w=3840&q=75)
-800x450.jpg&w=3840&q=75)
-800x450.jpg&w=3840&q=75)