Overview
- In November 2024, the spread between the outstanding weighted average lending rate (WALR – Lending Rate) and the weighted average domestic term deposit rate (WADTDR – Deposit Rate) for scheduled commercial banks (SCBs) decreased marginally by three basis points (bps) m-o-m to 2.89%.
- The outstanding (o/s) PSB spread has been compressing over the past year, declining marginally by 2 bps to 2.09% as of November 2024, while the PVBs spread declined by one bps, standing at 3.93%.
- The SCBs’ lending rate on o/s rupee loans marginally declined by one bps and stood at 9.87%. In contrast, the deposit rate on o/s rupee term deposits rose by two bps and stood at 6.98%.
- Meanwhile, the one-year median Marginal Cost of Funds-based Lending Rate (MCLR) remained flat and stood at 9.00% as of December 2024. However, PSBs witnessed an uptick of three bps m-o-m and stood at 9.03%. This could be attributed to the rising cost of funds and margin pressures for PSBs.