# Bank deposit rates fall as fresh lending rates rise in August — retained record

> Retained news record from news:india-et-markets.

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source: [news](https://highsignal.app/data/news) (news:india-et-markets)  published 2026-09-30 13:36 ingested 2026-10-01 03:04

[original source ↗](https://economictimes.indiatimes.com/markets/stocks/news/bank-deposit-rates-fall-as-fresh-lending-rates-rise-in-august/articleshow/134605619.cms)

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The weighted average rate on fresh rupee term deposits fell 18 basis points to 5.67% in August from 5.85% in July. The weighted average lending rate on fresh rupee loans rose nine basis points to 8.61% from 8.52%.
Both public and private sector banks paid less for new deposits. The average rate at public sector banks declined 15 basis points to 6.20%, while that at private banks fell 14 basis points to 5.82%.
The increase in fresh lending rates was concentrated at private banks, where the average rose 10 basis points to 9.19%. It edged up one basis point to 7.99% at public sector banks.
The divergence has widened since March, when banks raised deposit rates sharply. The average rate on fresh deposits has fallen 40 basis points from 6.07% in March, while the average rate on fresh loans has risen 21 basis points from 8.40%.
The rise in lending rates was not uniform across borrowers. The average rate on fresh other personal loans increased 17 basis points to 10.41% in August, while that on education loans rose 16 basis points to 9.30%. Fresh vehicle loan rates, however, fell 19 basis points to 9.57%, while housing loan rates eased two basis points to 7.61%.
Rates on existing business moved only marginally. The weighted average rate on outstanding loans declined one basis point to 8.96% in August, while the rate on outstanding term deposits fell two basis points to 6.56%. Separately, the one-year median marginal cost of funds-based lending rate declined to 8.61% in September from 8.70% in August.
The share of external benchmark-based lending rate (EBLR)-linked loans in total outstanding floating-rate rupee loans of banks was 68.2% at the end of June 2026, while that of MCLR-linked loans was 29.6%.
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document fetched 2026-10-01 03:04