Overview
- In May 2024, scheduled commercial banks (SCBs) spread between the outstanding (o/s) weighted average lending rate (WALR – Lending Rate) and weighted average domestic term deposit rate (WADTDR – Deposit Rate) decreased by 1 bps reaching a new 9-year low of 2.89%.
- The Lending Rate on o/s rupee loans remained flat sequentially to 9.81%, in contrast, the deposit rate on o/s rupee term deposits increased marginally by 1 bps to 6.92% in May 2024.
- Meanwhile, the one-year median Marginal Cost of Funds-based Lending Rate (MCLR) increased by 6 bps m-o-m and stood at 8.85% as of June 2024.
- SCBs fresh spreads between WALR and WADTDR narrowed sequentially by 15 bps and stood at 2.92%.
- The Lending Rate on fresh rupee loans sequentially decreased by 16 basis points (bps) to 9.39% in May 2024, while the Deposit Rate (Fresh) decreased marginally by 1 bps to 6.47% in May 2024.
Banking_Rate_Tracker_-_May_2024
