Banks Boost Lending Rates While Deposits Slip Downward

In April, banks decided to raise their lending rates to 8.5%, even though the RBI kept the repo rate unchanged. RBI's head honcho, Sanjay Malhotra, noted that strong credit demand was the main culprit for this hike, while deposits took a little tumble. It's a bit of a rollercoaster ride in the banking world!