Overview
• In January 2024, the spread of SCBs between the weighted average lending rate (WALR) and weighted average domestic term deposit rate (WADTDR) (the net interest rate spread) stood at 3.02% and 2.98% for Fresh and Outstanding rates, respectively in January 2024. Meanwhile, o/s spreads of PSBs hit a 10-year low at 2.34%, while PVBs continue to maintain a higher spread as compared to PSBs.
o The WALR on outstanding rupee loans of scheduled commercial banks (SCBs) increased by 2 bps sequentially to 9.83%, while WADTDR on o/s rupee term deposits increased by 2 bps to 6.83% in January 2024. Meanwhile, the one-year median Marginal Cost of fund-based Lending Rate (MCLR) of SCBs remained flat m-o-m and stood at 8.80% as of February 2024.
o The WALR on fresh rupee loans of SCBs increased sequentially by 13 basis points (bps) to 9.45% in January 2024, while WADTDR (Fresh) of SCBs decreased by 6 bps to 6.43% in January 2024.
