{
  "id": 11067865,
  "title": "Bank deposit rates fall as fresh lending rates rise in August",
  "url": "https://urgent.news/2026/09/30/bank-deposit-rates-fall-as-fresh-lending-rates-rise-in-august",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-30T13:36:25.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/stocks/news/bank-deposit-rates-fall-as-fresh-lending-rates-rise-in-august/articleshow/134605619.cms"
  },
  "original_language": "en",
  "account": "Banks reduced the interest they paid on fresh term deposits in August, while the average rate on new loans climbed, widening the gap between the two rates by 27 basis points, according to data from the Reserve Bank of India. A basis point represents one-hundredth of a percentage point. The average rate on fresh rupee term deposits dropped 18 basis points to 5.67% in August from 5.85% in July, while the weighted average lending rate on fresh rupee loans increased nine basis points to 8.61% from 8.52%.\n\nPublic and private sector banks both paid less for new deposits, with average rates falling 15 basis points to 6.20% at public banks and 14 basis points to 5.82% at private institutions. The rise in fresh lending rates was more pronounced at private banks, where the average increased 10 basis points to 9.19%, compared to a one basis point rise to 7.99% at public banks.\n\nThis divergence in rates has been growing since March, when banks sharply raised deposit rates. From March to August, the average rate on fresh deposits fell 40 basis points from 6.07% to 5.67%, while the average rate on fresh loans surged 21 basis points from 8.40% to 8.61%.\n\nThe increase in lending rates was not consistent across different types of loans. Fresh other personal loan rates rose 17 basis points to 10.41% in August, while education loan rates climbed 16 basis points to 9.30%. Fresh vehicle loan rates, however, decreased 19 basis points to 9.57%, and housing loan rates eased two basis points to 7.61%. Existing business loan rates only moved slightly, with the weighted average rate on outstanding loans falling one basis point to 8.96%, and the rate on outstanding term deposits falling two basis points to 6.56%.\n\nSeparately, the one-year median marginal cost of funds-based lending rate (MCLR) fell to 8.61% in September from 8.70% in August. The share of external benchmark-linked loans (EBLR) in total outstanding floating-rate rupee loans stood at 68.2% at the end of June 2026, while MCLR-linked loans accounted for 29.6%.",
  "summary": "In August, banks lowered the weighted average rate on fresh rupee term deposits to 5.67%. At the same time, the average lending rate on new loans increased to 8.61%. Public sector banks experienced a decrease in deposit rates, while private banks faced a similar trend. Lending rates varied based on loan types, with personal loans seeing a significant increase.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}