Banking Sector Check - Rise In Outstanding WADTDR Ahead Of Rise In Outstanding WALR: ICICI Securities

Median MCLR stable for public sector banks as well as private banks.

<div class="paragraphs"><p>A person counts Indian five-hundred rupee banknotes. (Photo: Radha Raswe /Source BQ Prime)</p></div>
A person counts Indian five-hundred rupee banknotes. (Photo: Radha Raswe /Source BQ Prime)

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ICICI Securities Report

Monthly data on lending and deposit rates of scheduled commercial banks (excluding regional rural banks and small finance banks) for July 2023 suggests:

  1. scheduled commercial banks’ weighted average lending rate on outstanding as well as fresh loans inched up in July 2023;

  2. outstanding weighted average domestic term deposit rates continues its upward movement, thereby resulting in spread compression;

  3. rise in outstanding WADTDR (7-8 basis points month-on-month) is much higher than the rise in outstanding WALR (up 1-2 bps month-on-month);

  4. fresh WADTDR has been range-bound at 6.32- 6.36% for the past four months and is clearly much below the March 2023 high of 6.48%;

  5. median one-year marginal cost of fund based lending rate for both public sector banks and private banks remains unchanged for the last two months.

Click on the attachment to read the full report: 

ICICI Securities Banking MCLR Update.pdf
IDFC First Bank - Robust Foundation, Responsible Progress: ICICI Securities


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