Spread Compression on O/s Business of SCBs Persists, Touches a 9-year Low

Overview • In September 2023, outstanding deposit rates increased while outstanding lending rates weakened marginally. Meanwhile, rates on fresh business broadly declined. o The spread of SCBs between WALR and WADTDR (the net interest rate spread) stood at 3.06% and 3.1% for Fresh and Outstanding rates, respectively in September 2023. The o/s SCB spread have been compressing over the last year and has reached a new 9-year low. PVBs continue to maintain a higher spread as compared to PSBs. Banking_Rate_Tracker_-_September_2023