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Lending rates rise faster than deposit rates
September 01, 2022
Ever since the 140 bps hike in benchmark repo rates, weighted average lending rates on outstanding loans have risen 29 basis points, but weighted average rates on outstanding deposits has gone up by only 19 bps, according to the latest data released by the Reserve Bank of India.
Banks have been more swift in raising loan rates than deposit rates since the Reserve Bank started signaling higher rates in May.
Ever since the 140 bps hike in benchmark repo rates, weighted average lending rates on outstanding loans have risen 29 basis points, but weighted average rates on outstanding deposits has gone up by only 19 bps, according to the latest data released by the Reserve Bank of India.
The weighted average domestic term deposit rate (WADTDR) for outstanding rupee term deposits of SCBs increased by 9 bps from 5.13 per cent in June 2022 to 5.22 per cent in July 2022.
The WADTDR of PSBs rose by 10 bps from 5.17 per cent in June 2022 to 5.27 per cent in July 2022, whereas for PVBs, it rose by 5 bps from 5.25 per cent in June 2022 to 5.30 per cent in July 2022.
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