Fresh bank lending rates fall 10 bps to 8.51% in September | Banking

Fresh lending rates fell 10 basis points (bps) to 8.51 per cent in September 2026, while fresh deposit rates fell 6 bps to 5.61 per cent, narrowing the spread on fresh business by 4 bps to 2.90 per cent.

On the deposit front, banks paid less for fresh term deposits in September. The weighted average rate fell 6 bps to 5.61 per cent, the lowest in 10 months, as banks had less need to chase deposits. The foreign currency non-resident (banks) money raised under the Reserve Bank of India’s swap window, which closed on August 31, left banks with surplus liquidity, enabling them to let expensive bulk deposits mature without replacing them, which pulled the average down.