ANI
02 Jul 2025, 15:37 GMT+10
New Delhi [India], July 2 (ANI): The weighted average lending rate (WALR) on fresh rupee loans of scheduled commercial banks (SCBs) declined to 9.20 per cent in May 2025, from 9.26 per cent in April, according to Reserve Bank of India (RBI) data.
RBI data also showed that the weighted average lending rate on outstanding rupee loans of scheduled commercial banks dropped marginally to 9.69 per cent in May from 9.70 per cent in April.
The 1-year median Marginal Cost of Funds based Lending Rate (MCLR) of scheduled commercial banks moderated to 8.90 per cent in June from 8.95 per cent in May.
The share of External Benchmark based Lending Rate (EBLR) linked loans in total outstanding floating rate rupee loans of scheduled commercial banks was 61.6 per cent at end-March 2025 (60.6 per cent at end-December 2024), while that of MCLR linked loans was 34.9 per cent (35.9 per cent at end-December 2024).
On the contrary, the weighted average domestic term deposit rate (WADTDR) on fresh rupee term deposits of scheduled commercial banks stood at 6.11 per cent in May as compared to 6.34 per cent in April 2025.
The weighted average domestic term deposit rate (WADTDR) on outstanding rupee term deposits of scheduled commercial banks also dropped to 7.07 per cent in May 2025 against 7.10 per cent in April 2025.
Many scheduled commercial banks have adjusted their loan interest rates, aimed at transmitting the benefits of the cumulative 100 basis points repo rate cut by the RBI monetary policy committee since early this year.
These moves are seen as an effort to improve loan affordability in India.
The recent frontloaded repo rate cut by the RBI was understandably aimed at boosting economy, which has relatively moderated. The policy rate cut and the subsequent decline in interest rates by banks will create demand for fresh credit, giving fresh life to the economy.
After a total of 100 basis point repo rate reduction since February 2025, the scope for more rate cuts, however, is limited, as was indicated by RBI Governor Sanjay Malhotra after the latest monetary policy review meeting. (ANI)
Get a daily dose of Madagascar Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Madagascar Sun.
More InformationAbu Dhabi [UAE], July 5 (ANI/WAM): Sultan Mohammed Al Shamsi, UAE Assistant Minister of Foreign Affairs for Development Affairs and...
Buenos Aires [Argentina] July 5 (ANI): As Prime Minister Narendra Modi is on the way to Argentina, Indian Ambassador Ajaneesh Kumar...
Port of Spain [Trinidad and Tobago] July 5 (ANI): Prime Minister Narendra Modi embarked on his visit to Argentina, for the 3rd leg...
Port of Spain [Trinidad and Tobago], July 4 (ANI): In an ode to cultural fusion between the two nations, Prime Minister Narendra Modi,...
Mohali (Punjab) [India], July 4 (ANI): Sukhwinder Tinkku, childhood coach of Indian test skipper Shubman Gill, praised him for his...
Port of Spain [Trinidad and Tobago], July 4 (ANI): Prime Minister Narendra Modi, after being conferred with 'The Order of the Republic...
WASHINGTON, D.C.: President Donald Trump will meet Israeli Prime Minister Benjamin Netanyahu at the White House on Monday. President...
GENEVA, Switzerland: A new United Nations report alleges that dozens of global corporations are profiting from and helping sustain...
LONDON, UK - Lawmakers in the United Kingdom have voted overwhelmingly to proscribe the direct-action group Palestine Action as a terrorist...
DHARAMSHALA, India: The Dalai Lama is set to address a significant three-day conference of Buddhist leaders this week, coinciding with...
WASHINGTON, D.C.: In a significant ruling last week, the U.S. Supreme Court upheld a Texas law requiring age verification for users...
ISTANBUL/PARIS/BRUSSELS: As searing temperatures blanket much of Europe, wildfires are erupting and evacuation orders are being issued...