Evolution of Lending and Deposit Rates in Indian Commercial Banks

The latest data released by the Reserve Bank of India (RBI) on lending and deposit rates for private sector banks in August 2026 reveal important trends. The weighted average lending rate (WALR), applied to rupee loans, remained stable at 8.97% annually, indicating macroeconomic stability during this period. However, there was a marginal decrease in the new loan rate to 8.52%, suggesting a certain adjustment in financing costs among banking institutions. The one-year Marginal Cost of Funds based Lending Rate (MCLR) for the same period reached 8.70% annually, also showing a slight decline from July 2026. While the weighted average domestic term deposit rate (WADTDR) remained unchanged at 6.58% annually, there was a significant drop in the rate applied to new domestic deposits to 5.90%, indicating adjustments in the savings scenario of the Indian economy. These trends reflect the complexity of balancing credit supply and deposit demand in a more dynamic and globally integrated economic environment.