The Reserve Bank of India reported lower weighted average rates on fresh rupee loans and term deposits in September, while rates on outstanding loans stayed level, offering a mixed picture of bank pricing.
The weighted average lending rate on new rupee loans was 8.51% in September, down from 8.61% in August. For outstanding rupee loans, the weighted average rate remained at 8.96% over the same period.
Rates on term deposits also eased. The weighted average rate on fresh rupee term deposits fell to 5.61% from 5.67% in August, while the rate on outstanding term deposits edged down to 6.55% from 6.56%.
Separately, the median one-year Marginal Cost of Funds based Lending Rate (MCLR) declined to 8.55% in October from 8.61% in September. The loan and deposit figures cover September; the MCLR comparison includes October.
Sector-level readings varied for both fresh and outstanding loans in September, the RBI said in its Oct. 30 release. The data cover scheduled commercial banks, excluding regional rural banks and small finance banks.
