Lending rates in February fell from January though were higher last year
On a year-on-year basis, non-food bank credit rose 16.5 per cent in February 2024 as compared with 15.9 per cent a year ago according to the latest data on sectoral deployment of bank credit released by the Reserve Bank of India.
Retail loans growth moderated to 18.1 per cent (y-o-y) in February compared to 20.6 per cent a year ago due to decelerated growth in vehicle loans and other personal loans.
Credit to services sector grew by 21.2 per cent (y-o-y) compared to 20.5 per cent a year ago. Among major contributors to growth were ‘trade’ and ‘commercial real estate’, while loans to NBFCs decelerated compared to February 2023.
Credit to industry grew by 8.6 per cent (y-o-y) compared with 6.8 per cent in February 2023. Credit growth to agriculture and allied activities rose 20.1 per cent (y-o-y) against 15 per cent a year ago.The weighted average lending rate (WALR) on fresh rupee loans stood at 9.36 per cent in February 2024 from 9.43 per cent in January 2024 but higher than 9. 24 per cent in February 2023. The WALR on outstanding rupee loans was at 9.83 per cent in February 2024 from 9.85 per cent in January 2024 but higher than 9.61 per cent in February 2023.The share of External Benchmark based Lending Rate (EBLR) linked loans in total outstanding floating rate rupee loans was 56.2 per cent at end-December 2023 up from 53.3 per cent at end-September, while that of MCLR linked loans was 39.4 per cent from (41.9 per cent at end-September.
The weighted average domestic term deposit rate on fresh rupee term deposits increased sequentially to 6.44 per cent in February from 6.43 per cent in January.
The weighted average domestic term deposit rate (WADTDR) on outstanding rupee term deposits was at 6.86 per cent in February 2024 from 6.84 per cent in January.
