The weighted average lending rate (WALR) on fresh rupee loans sanctioned by scheduled commercial banks (SCBs) moves up by 10 basis points on an average from 7.72 per cent in December 2021 to 7.82 per cent in January 2022, according to Reserve Bank of India data.
This increase in lending rate on fresh loans comes amid a pick up in credit and banks beginning to nudge up deposit rates.
The average WALR of public sector banks (PSBs) moved up by 7 basis points from 7.16 per cent in December 2021 to 7.23 per cent in January 2022, private banks by 12 basis points from 8.62 per cent in December 2021 to 8.74 per cent in January 2022, and foreign banks by 11 basis points from 6.03 per cent in December 2021 to 6.14 per cent in January 2022.
The WALR on outstanding rupee loans sanctioned by SCBs nudged down 3 basis points on an average from 8.86 per cent in December 2021 to 8.83 per cent.
The weighted average domestic term deposit rates (WADTR) on outstanding Rupee term deposits of SCBs declined a share from 5.04 per cent in December 2021 to 5.03 per cent in January 2022.