Overview:
- In October 2023, outstanding deposit and lending rates reported growth. Meanwhile, rates on fresh business reported differing developments with lending rates rising and deposit rates reducing.
- The spread of SCBs between weighted average lending rate (WALR) and weighted average domestic term deposit rate (WADTDR) (the net interest rate spread) stood at 3.19% and 3.06% for Fresh and Outstanding rates, respectively in October 2023. The Outstanding SCB spread has been compressing over the last year. PVBs continue to maintain a higher spread as compared to PSBs.
- The WALR on outstanding rupee loans of scheduled commercial banks (SCBs) increased marginally by 1 bps sequentially to 9.84%, while WADTDR on o/s rupee term deposits increased by 6 bps to 6.75% in October 2023.
- One-year median Marginal Cost of fund-based Lending Rate (MCLR) of SCBs stood at a similar level of 8.70% in November 2023 from October 2023 and September 2023.
- The WALR on fresh rupee loans of SCBs rose sequentially by 12 basis points (bps) to 9.50% in October 2023, while WADTDR (Fresh) SCBs fell by 1 bps to 6.31% in October 2023.
