Fresh rupee loan rates fell 81 bps against a 125 bps repo cut, with public sector banks trailing private and foreign banks: इस घटनाक्रम पर आधिकारिक अपडेट दर्ज किया गया है। As the monetary policy committee announces its rate decision on Wednesday, all eyes will be on the quantum of repo rate movement. But the RBI’s rate action can be effective only if the commercial banks pass on the rate change through their deposit and lending rates.
## बाजार और अर्थव्यवस्था: क्या हुआ बड़ा बदलाव?
Fresh rupee loan rates fell 81 bps against a 125 bps repo cut, with public sector banks trailing private and foreign banks
As the monetary policy committee announces its rate decision on Wednesday, all eyes will be on the quantum of repo rate movement. But the RBI’s rate action can be effective only if the commercial banks pass on the rate change through their deposit and lending rates.
However, the RBI’s current easing cycle saw significantly weaker transmission than the previous one. Between February 2025 and July 2026, the repo rate was cut by 125 basis points (bps). But transmission has been poor in both deposit and lending rates. The transmission has been weaker in public sector banks when compared with private sector banks.
In the current cycle, against the 125-bps repo-rate reduction, the weighted average lending rate (WALR) on fresh rupee loans fell by 81 bps and the WALR on outstanding rupee loans fell by 90 bps. Interest rates on the one-year marginal cost of funds-based lending rate (MCLR) saw a much lower decline of 40 bps, while the entire rate cut was passed on in the external benchmark-linked loans.
Deposit rate transmission has also been muted this cycle. Fresh term-deposit rates declined by 72 bps, while outstanding term-deposit rates fell by only 51 bps.
## प्रमुख वित्तीय आंकड़े और कंपनियों का रुख
• Fresh rupee loan rates fell 81 bps against a 125 bps repo cut, with public sector banks trailing private and foreign banks • As the monetary policy committee announces its rate decision on Wednesday, all eyes will be on the quantum of repo rate movement. But the RBI’s rate action can be effective only if the commercial banks pass on the rate change through their deposit and lending rates. • However, the RBI’s current easing cycle saw significantly weaker transmission than the previous one. Between February 2025 and July 2026, the repo rate was cut by 125 basis points (bps). But transmission has been poor in both deposit and lending rates. The transmission has been weaker in public sector banks when compared with private sector banks. • In the current cycle, against the 125-bps repo-rate reduction, the weighted average lending rate (WALR) on fresh rupee loans fell by 81 bps and the WALR on outstanding rupee loans fell by 90 bps. Interest rates on the one-year marginal cost of funds-based lending rate (MCLR) saw a much lower decline of 40 bps, while the entire rate cut was passed on in the external benchmark-linked loans. • Deposit rate transmission has also been muted this cycle. Fresh term-deposit rates declined by 72 bps, while outstanding term-deposit rates fell by only 51 bps. • However, during the previous easing cycle between February 2019 and April 2022, the WALR of SCBs on fresh rupee loans declined by about 229 bps against a repo rate reduction of 250 bps. The median one-year MCLR, however, fell by only 155 bps. Transmission was also good in deposit rates in the previous cycle. Fresh term-deposit rates saw a 259-bps decline in the February 2019 • The lower transmission in this cycle is due to the strong growth in bank credit intensifying the competition for deposits. This made interest rates on deposits sticky, affecting the MCLR. Tighter liquidity due to the RBI’s forex interventions and VRRR auctions also kept market rates high, impacting transmission to bank lending and deposit rates. • Public sector banks (PSBs) have been slower than their private and foreign counterparts to transmit the current rate cuts to borrowers in the current rate-cutting cycle. • For fresh rupee loans, the WALR of PSBs declined by only 61 bps during February 2025-July 2026, compared with 111 bps at private banks and 125 bps at foreign banks. • The pattern is similar on deposits. Fresh term-deposit rates fell 66 bps at PSBs, against 74 bps at private banks and 87 bps at foreign banks.
## निवेशकों और उपभोक्ताओं के लिए जरूरी बातें
However, during the previous easing cycle between February 2019 and April 2022, the WALR of SCBs on fresh rupee loans declined by about 229 bps against a repo rate reduction of 250 bps. The median one-year MCLR, however, fell by only 155 bps. Transmission was also good in deposit rates in the previous cycle. Fresh term-deposit rates saw a 259-bps decline in the February 2019
The lower transmission in this cycle is due to the strong growth in bank credit intensifying the competition for deposits. This made interest rates on deposits sticky, affecting the MCLR. Tighter liquidity due to the RBI’s forex interventions and VRRR auctions also kept market rates high, impacting transmission to bank lending and deposit rates.
Public sector banks (PSBs) have been slower than their private and foreign counterparts to transmit the current rate cuts to borrowers in the current rate-cutting cycle.
For fresh rupee loans, the WALR of PSBs declined by only 61 bps during February 2025-July 2026, compared with 111 bps at private banks and 125 bps at foreign banks.
The pattern is similar on deposits. Fresh term-deposit rates fell 66 bps at PSBs, against 74 bps at private banks and 87 bps at foreign banks.
The slower pass
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## ताजा स्थिति व आगे का अपडेट
संबंधित विभाग और जांच एजेंसियां मामले के सभी पहलुओं का अध्ययन कर रही हैं। किसी भी नए आधिकारिक अपडेट की पुष्टि होते ही जानकारी साझा की जाएगी।
## बाजार और अर्थव्यवस्था: क्या हुआ बड़ा बदलाव?
Fresh rupee loan rates fell 81 bps against a 125 bps repo cut, with public sector banks trailing private and foreign banks
As the monetary policy committee announces its rate decision on Wednesday, all eyes will be on the quantum of repo rate movement. But the RBI’s rate action can be effective only if the commercial banks pass on the rate change through their deposit and lending rates.
However, the RBI’s current easing cycle saw significantly weaker transmission than the previous one. Between February 2025 and July 2026, the repo rate was cut by 125 basis points (bps). But transmission has been poor in both deposit and lending rates. The transmission has been weaker in public sector banks when compared with private sector banks.
In the current cycle, against the 125-bps repo-rate reduction, the weighted average lending rate (WALR) on fresh rupee loans fell by 81 bps and the WALR on outstanding rupee loans fell by 90 bps. Interest rates on the one-year marginal cost of funds-based lending rate (MCLR) saw a much lower decline of 40 bps, while the entire rate cut was passed on in the external benchmark-linked loans.
Deposit rate transmission has also been muted this cycle. Fresh term-deposit rates declined by 72 bps, while outstanding term-deposit rates fell by only 51 bps.
## प्रमुख वित्तीय आंकड़े और कंपनियों का रुख
• Fresh rupee loan rates fell 81 bps against a 125 bps repo cut, with public sector banks trailing private and foreign banks • As the monetary policy committee announces its rate decision on Wednesday, all eyes will be on the quantum of repo rate movement. But the RBI’s rate action can be effective only if the commercial banks pass on the rate change through their deposit and lending rates. • However, the RBI’s current easing cycle saw significantly weaker transmission than the previous one. Between February 2025 and July 2026, the repo rate was cut by 125 basis points (bps). But transmission has been poor in both deposit and lending rates. The transmission has been weaker in public sector banks when compared with private sector banks. • In the current cycle, against the 125-bps repo-rate reduction, the weighted average lending rate (WALR) on fresh rupee loans fell by 81 bps and the WALR on outstanding rupee loans fell by 90 bps. Interest rates on the one-year marginal cost of funds-based lending rate (MCLR) saw a much lower decline of 40 bps, while the entire rate cut was passed on in the external benchmark-linked loans. • Deposit rate transmission has also been muted this cycle. Fresh term-deposit rates declined by 72 bps, while outstanding term-deposit rates fell by only 51 bps. • However, during the previous easing cycle between February 2019 and April 2022, the WALR of SCBs on fresh rupee loans declined by about 229 bps against a repo rate reduction of 250 bps. The median one-year MCLR, however, fell by only 155 bps. Transmission was also good in deposit rates in the previous cycle. Fresh term-deposit rates saw a 259-bps decline in the February 2019 • The lower transmission in this cycle is due to the strong growth in bank credit intensifying the competition for deposits. This made interest rates on deposits sticky, affecting the MCLR. Tighter liquidity due to the RBI’s forex interventions and VRRR auctions also kept market rates high, impacting transmission to bank lending and deposit rates. • Public sector banks (PSBs) have been slower than their private and foreign counterparts to transmit the current rate cuts to borrowers in the current rate-cutting cycle. • For fresh rupee loans, the WALR of PSBs declined by only 61 bps during February 2025-July 2026, compared with 111 bps at private banks and 125 bps at foreign banks. • The pattern is similar on deposits. Fresh term-deposit rates fell 66 bps at PSBs, against 74 bps at private banks and 87 bps at foreign banks.
## निवेशकों और उपभोक्ताओं के लिए जरूरी बातें
However, during the previous easing cycle between February 2019 and April 2022, the WALR of SCBs on fresh rupee loans declined by about 229 bps against a repo rate reduction of 250 bps. The median one-year MCLR, however, fell by only 155 bps. Transmission was also good in deposit rates in the previous cycle. Fresh term-deposit rates saw a 259-bps decline in the February 2019
The lower transmission in this cycle is due to the strong growth in bank credit intensifying the competition for deposits. This made interest rates on deposits sticky, affecting the MCLR. Tighter liquidity due to the RBI’s forex interventions and VRRR auctions also kept market rates high, impacting transmission to bank lending and deposit rates.
Public sector banks (PSBs) have been slower than their private and foreign counterparts to transmit the current rate cuts to borrowers in the current rate-cutting cycle.
For fresh rupee loans, the WALR of PSBs declined by only 61 bps during February 2025-July 2026, compared with 111 bps at private banks and 125 bps at foreign banks.
The pattern is similar on deposits. Fresh term-deposit rates fell 66 bps at PSBs, against 74 bps at private banks and 87 bps at foreign banks.
The slower pass
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
## ताजा स्थिति व आगे का अपडेट
संबंधित विभाग और जांच एजेंसियां मामले के सभी पहलुओं का अध्ययन कर रही हैं। किसी भी नए आधिकारिक अपडेट की पुष्टि होते ही जानकारी साझा की जाएगी।
पूरी खबर, विस्तृत घटनाक्रम और विश्लेषण पढ़ने के लिए क्लिक करें
