#PSUBanks are Raising #Fresh #FixedDeposits at Rates similar to Avg Weighted Lending Rate and Below Fresh Lending Rate ...... So if your ULTRA bullish on Tier 2 PSU Banks.... The game of Musical-Chairs will stop in 3-4 months. Lets look at the Data
System-wise and Group-wise, Weighted Average Lending Rates (WALR) for the entire stock of loans....
For PSU banks its 8.74% in October. RBI rate hike impact will come with a lag. None the less, its barely changed over past 12 months (8.42% => 8.74%) for PSU Banks.
For PSU banks its 8.74% in October. RBI rate hike impact will come with a lag. None the less, its barely changed over past 12 months (8.42% => 8.74%) for PSU Banks.
The previous data was for STOCK of loans. How About Fresh Rupee Loans Sanctioned? Weighted Average Lending Rates (WALR) on FRESH LOANS. As you can see for PSU Banks, Fresh Rupee Loans is just 7.98%. Need to watch data for Dec-22 since we Now KNOW that FD rates have touched 8.05%
Meanwhile, the recent pick up in FD rates will take time to show up in the STOCK OFF Weighted Average Domestic Term Deposit Rates (WADTDR) .. RBI does not publish data on Fresh Weighted Average FD Rates
Remember market moves on INCREMENTAL Earnings upgrades or Downgrades. If the PSU Banks are start saying that Net Interest Margins NIMs have Peaked, then the "Musical Chairs" will slow-down and eventually come to a stand-still.
RBI is keeping a lid on M3, so FD rates will rise.
RBI is keeping a lid on M3, so FD rates will rise.
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