Weakest Deposit Growth Since 1963 Means Higher India Rates

India’s bank deposits are growing at the slowest pace in half a century, frustrating attempts by policy makers to lower one of the highest borrowing costs among emerging markets.

Savers parked about 94 trillion rupees ($1.4 trillion) with banks in the year through March 31, the smallest increase since 1963, according to ICRA Ltd., the local unit of Moody’s Investors Service. A continued slowdown may keep lenders from passing on policy rate cuts to customers, and could also compel them to sell holdings of government bonds to raise more cash.