RBI · Macro Data
RBI data shows lending rates rising, deposit rates falling in April
Weighted average lending rate on fresh loans rises while deposit rates fall, squeezing bank margins.
What changed
- Weighted average lending rate on fresh loans up to 8.50% in April from 8.40% in March
- Weighted average domestic term deposit rate on fresh deposits down to 5.77% in April from 6.07% in March
- 1-Year median MCLR rises to 8.65% in May from 8.55% in April
The read
RBI data for April 2026 reveals a widening gap between lending and deposit rates. The weighted average lending rate on fresh loans rose to 8.50% from 8.40% in March, while the weighted average domestic term deposit rate on fresh deposits slumped to 5.77% from 6.07%. This 273 basis point spread, up from 233 basis points, spells trouble for banks' net interest margins if deposit costs rise later. The 1-Year median MCLR edged up to 8.65% in May, suggesting further lending rate increases ahead. The WALR on fresh and outstanding loans moderated across sectors, but the direction points to tighter conditions.
Key numbers
- WALR fresh loans: 8.50%
- WADTDR fresh deposits: 5.77%
- 1-Year median MCLR: 8.65%
Primary source: rbi.org.in