Friday, August 21
MUMBAI: Weighted average lending rates on fresh rupee loans across the banking system rose by 10 basis points to 8.71% end-November, central bank data showed. One basis point is a hundredth of a percentage point.State-run banks led the increase, raising lending rates by 16 bps month-on-month to 8.05%, while rates at private banks remained unchanged at 9.44%. Foreign banks, meanwhile, lowered lending rates by 6 bps to 8.18% from 8.24% in October.The upward pressure on lending rates reflects rising 10-year sovereign bond yields and sluggish deposit growth, which have constrained banks' ability to reprice deposits downward and, in turn, limited the pass-through of policy rate cuts to borrowers."System liquidity has been tight, 10-year sovereign yields have hardened, and deposit repricing rema
