Speaking to ET Now, Tonse said that rate transmission has already played out significantly in the banking system. “On the asset side, the adjustment happens almost instantly. On the deposit side, we have limitations, but since February we have seen more than 106 basis points transmission on fresh deposits and about 22 basis points on overall deposits,” he noted.He further added that SBI expects the terminal Busy season demand boostTonse highlighted that the traditional busy season is setting in earlier thi ...

Khara noted that the coverage ratios of banks are at healthy levels, ensuring adequate buffers against potential credit risks. “The Liquidity and transmission outlookOn the monetary transmission front, RBI Governor Sanjay Malhotra highlighted that around 58 basis points (bps) of transmission on new loans has already taken place, with 21 bps achieved in the recent months. Deposit rates have also seen a rise of 106 bps, reflecting a gradual alignment of lending and deposit rates.Khara believes that the relax ...