According to latest figures available from State Bank, the lending rate of nationalised banks was 10.41 percent in January 2003 while the deposit rate was 2.81 percent.
In November, 2003, the lending rate dropped to 5.66 percent while the deposit rate slipped to 1.38 percent.
The privatised banks' lending rate in January was 10.48 percent and deposit rate 2.75 percent.
In November, 2003, their lending rate declined to 5.72 percent while the deposit rate fell to 0.96 percent.
Private domestic banks were moving in the same circle of lending and deposit rates. Their lending rate in January 2003, was 10 percent and the deposit rate was 4.25 percent.
Their lending rate in November was 6.05 percent while the deposit rate touched 1.86 percent.
However, foreign banks showed better performance than other banks as their lending rate came down to 3.91 percent in November from 8.38 percent in January 2003. Their deposits rate slipped to 1.13 percent in November compared to 2.79 percent in January 2003.
Market experts said that low return on deposits was the real cause of increase of investment in the stocks business as the depositors found it difficult to get satisfactory return from banks.