In August 2024, the Reserve Bank of India (RBI) released updated data on lending and deposit rates for Scheduled Commercial Banks (SCBs), excluding regional rural banks and small finance banks. The data highlighted several key trends in the banking sector’s interest rates during July 2024.
Regarding lending rates, the weighted average lending rate (WALR) for new rupee loans rose to 9.40% in July 2024, up from 9.32% in June 2024. This indicates a slight increase in the cost of borrowing for fresh loans. Conversely, the WALR for outstanding rupee loans remained unchanged at 9.91% throughout July 2024, suggesting stability in the rates charged on existing loans. Additionally, the 1-Year median Marginal Cost of Fund-based Lending Rate (MCLR), a benchmark used to set floating interest rates, increased to 8.90% in August 2024, up from 8.85% in July 2024. This rise reflects a marginal upward adjustment in the cost of funds for SCBs.
On the deposit side, the weighted average domestic term deposit rate (WADTDR) for new rupee term deposits slightly increased to 6.48% in July 2024 from 6.46% in June 2024. This shows a small rise in the returns offered to depositors on new term deposits. For outstanding rupee term deposits, the WADTDR edged up to 6.92% in July 2024, compared to 6.91% in June 2024. This indicates a marginal improvement in the interest rates on deposits that were already held by banks.
Overall, the data reflects a modest upward trend in both lending and deposit rates. While lending rates for new loans increased slightly, the rates for existing loans remained stable, and deposit rates showed a small increase, indicating a gradual adjustment in the interest rate environment within the banking sector.
댓글