IndusInd Bank sees further scope to cut savings, term deposit rates, says Soumitra Sen

IndusInd Bank

IndusInd Bank sees a further scope for reducing rates on savings and term deposits going forward and improving the granularity of deposits, said Soumitra Sen, Head of Consumer Banking and marketing.

“There is further scope to cut both savings account as well as term deposit rates. Improving the granularity of deposits along with reduction in cost of deposits continues to be our immediate priority,” Sen said during the post earnings analyst call on July 28.

This move aligns with the broader industry trend of optimizing deposit structures to maintain profitability amid changing interest rate cycles.

"The liquidity ratios and the liquidity measures announced by the Reserve Bank of India are positive," he stated, underlining that the bank views these developments as supportive of its ongoing deposit strategy.

The cost of deposit of the bank in the reporting quarter eased by 9 basis points (Bps) year-on-year, and 6 bps on-quarter. According to the investor presentation, cost of deposit stood at 6.44 percent in Q1FY26, as compared to 6.50 percent in Q4FY25, and 6.53 percent in Q1FY25.

Further, savings account deposit in the reporting quarter stood at Rs 91,113 crore, which was 7 percent on-year and 3 percent on-quarter. In a year ago period saving account deposit stood at Rs 97,659 crore and in a quarter ago period it stood at Rs 94,025 crore.

Deposits as on June 30, 2025, were Rs 3,97,144 crore as against Rs 3,98,513 crore for June 30, 2024. CASA deposits is at Rs 1,25,006 crore with Current Account deposits at Rs 33,892 crore and Savings Account deposit at Rs 91,113 crore. CASA deposits comprised 31.48 percent of total deposits as on June 30, 2025.