The weighted average lending rate (WALR) on fresh rupee loans of scheduled commercial banks fell 58 basis points to 8.62% in June, according to provisional data released by the Reserve Bank of India (RBI) on Thursday.
Lending rates dropped by 78 bps for scheduled commercial banks
This is the biggest month-on-month drop since the beginning of the rate cut cycle by the central bank from February. In all, the lending rates have fallen by 78 bps for scheduled commercial banks since February while the RBI has cut repo rates to the tune of 100 basis points.
PSU lending rates at 7.8%, private sector banks at 9.74%
Public sector banks saw faster transmission of rates with lending rates falling 56 bps on month to 7.82% in June from 8.38% in May, while rates of private sector banks fell 41 basis points to 9.74%.