Overview
- In February 2024, the spread of SCBs between the weighted average lending rate (WALR – Lending Rate) and weighted average domestic term deposit rate (WADTDR – Deposit Rate) (the net interest rate spread) stood at 2.92% and 2.95% for Fresh and Outstanding rates, respectively. Meanwhile, o/s spreads of PSBs touched a new 10-year low of 2.31%, while PVBs continued to maintain a higher spread as compared to PSBs.
o The Lending Rate on outstanding rupee loans of scheduled commercial banks (SCBs) decreased by 2 bps sequentially to 9.81%. In comparison, the Deposit Rate on o/s rupee term deposits increased marginally by 1 bps to 6.86% in February 2024. Meanwhile, the one-year median MCLR of SCBs remained flat m-o m and stood at 8.80% as of March 2024.
o The Lending Rate on fresh rupee loans of SCBs decreased sequentially by 7 basis points (bps) to 9.36% in February 2024, while the Deposit Rate (Fresh) of SCBs increased by 1 bps to 6.44% in February 2024.
