Key Market Indicators: Banks' Lending and Deposit Rates Show Mixed Trends in Latest RBI Report
The Reserve Bank of India (RBI) has released crucial data detailing the lending and deposit rates of Scheduled Commercial Banks (SCBs) for July 2026, shedding light on shifts across various financial metrics. The report indicates a mixed movement across borrowing and depositing costs in the banking sector over recent months, providing important context for market participants.Overview of Lending Rate Trends
The Weighted Average Lending Rate (WALR) on fresh rupee loans by SCBs stood at 8.53 per cent in June 2026, slightly up from 8.51 per cent recorded in May 2026. This metric tracks the costs associated with new loan disbursements across scheduled commercial banks.Looking at the cost of outstanding rupee loans, the WALR demonstrated a marginal decline to 8.96 per cent in June 2026, down from 8.97 per cent in May 2026. This suggests minor easing pressures on maintaining ongoing credit lines.
MCLR and Deposit Rate Movements
The 1-Year median Marginal Cost of Funds based Lending Rate (MCLR) for SCBs was reported at 8.60 per cent in July 2026, marking an increase from the 8.50 per cent recorded in June 2026. The MCLR remains a key benchmark reflecting banks' average cost of funds plus margin.On the deposit side, the Weighted Average Domestic Term Deposit Rate (WADTDR) on fresh rupee term deposits saw growth. This rate reached 5.99 per cent in June 2026, up from 5.83 per cent in May 2026.
Shifts in Outstanding Deposit Rates
The data also revealed specific trends regarding rates offered to existing depositors. The WADTDR on outstanding rupee term deposits witnessed a marginal uptick in the same period. This rate reached 6.58 per cent in June 2026, showing an increase from 6.57 per cent recorded during May 2026.The RBI report emphasizes that the movement of WALR on both fresh and outstanding rupee loans exhibited a mixed pattern across various sectors of the banking industry. This variation highlights differential rate adjustments based on loan characteristics and market conditions.
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