SCB's Weighted Average Lending Rate on outstanding rupee loans stay muted

The Reserve Bank of India reported that the weighted average lending rate (WALR) on outstanding rupee loans of Scheduled Commercial Banks (SCBs) held steady at 8.96 per cent in September 2026, consistent with the level in August 2026. The WALR on new rupee loans disbursed by SCBs decreased to 8.51 per cent in September 2026, down from 8.61 per cent in August 2026. The 1-Year median Marginal Cost of Funds based Lending Rate (MCLR) of SCBs moderated to 8.55 per cent in October 2026, a decrease from 8.61 per cent in September 2026. Movement in the WALR for both fresh and outstanding rupee loans varied across sectors in September 2026. The weighted average domestic term deposit rate (WADTDR) on outstanding rupee term deposits of SCBs saw a slight reduction to 6.55 per cent in September 2026, compared to 6.56 per cent in August 2026. The WADTDR on new rupee term deposits of SCBs fell to 5.61 per cent in September 2026, from 5.67 per cent in August 2026.