- In July 2023, outstanding deposit rates increased while outstanding lending rates remained flat. Meanwhile, rates on fresh business climbed.
- The weighted average lending rate (WALR) on fresh rupee loans of scheduled commercial banks (SCBs) increased sequentially by 24 basis points (bps) to 9.44% in July 2023 from 9.19% in June 2023, while the WALR on outstanding rupee loans remained flat sequentially.
- The weighted average domestic term deposit rate (WADTDR) on fresh rupee term deposits of SCBs increased marginally by 1 bps from 6.34% in June 2023 to 6.35% in July 2023. Meanwhile, WADTDR on outstanding rupee term deposits increased by 8 bps from 6.47% in June 2023 to 6.55% in July 2023.
- One-year median Marginal Cost of Fund-based Lending Rate (MCLR) of SCBs decreased from 8.63% in July 2023 to 8.60% in August 2023.
- The spread of SCBs between WALR and WADTDR (the net interest rate spread) stood at 3.09% and 3.27% for Fresh and Outstanding rates, respectively, in July 2023.
Deposit_Rate_Rise_Leads_to_Spread_Compression_Fresh_Rates_Volatile
