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Scheduled commercial banks (SCBs) lowered their benchmark lending rates in June, with the one-year median Marginal Cost of Funds-based Lending Rate (MCLR) falling to 8.50 per cent, as per a statement by the Reserve Bank of India (RBI).
The RBI released data on lending and deposit rates of scheduled commercial banks (SCBs), excluding regional rural banks and small finance banks, for June 2026 on Tuesday. According to the RBI, lending rates on both fresh and outstanding rupee loans recorded a mixed movement across sectors during May. The weighted average lending rate (WALR) on fresh rupee loans of SCBs stood at 8.51 per cent in May 2026, compared with 8.50 per cent in April 2026. Meanwhile, the WALR on outstanding rupee loans declined marginally to 8.97 per cent from 8.98 per cent over the same period. At the same time, "one-year median Marginal Cost of Funds based Lending Rate (MCLR) of SCBs stood at 8.50 per cent in June 2026 (8.65 per cent in May 2026)," it said. The data also indicated a continued shift towards external benchmark-linked lending. The share of External Benchmark-based Lending Rate (EBLR)-linked loans in total outstanding floating-rate rupee loans of SCBs rose to 67.6 per cent at the end of March 2026, up from 65.5 per cent at the end of December 2025. "MCLR linked loans was 30.2 per cent (32.0 per cent at end-December 2025," the release said. On the deposit side, the weighted average domestic term deposit rate (WADTDR) on fresh rupee term deposits increased to 5.84 per cent in May 2026, compared with 5.79 per cent in April. "WADTDR on outstanding rupee term deposits of SCBs moderated to 6.57 per cent in May 2026 from 6.59 per cent in April 2026," the release said. (ANI)
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