Indian Banking Sector - Private Banks Witness Improvement In Spreads In August: Systematix
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Systematix Research Report
In August 2021 and Q2 FY22, the domestic banking industry witnessed a 6 basis points and 25 bps rise, respectively, in the weighted average fresh loan lending rates.
On outstanding loans, the weighted average lending rate moderated by 1 bps and the weighted average term deposit rate declined by 7 bps in Q2 FY22.
Divergence in fresh loans and outstanding loans WALR trajectories in Q2 FY22 could be due to sizable write-off of high-yielding loans.
In Q2 FY22, private sector banks witnessed a sharp 54 bps rise in their fresh loans WALR to 8.83%; their outstanding loans WALR was largely flat at 9.92% while WADTDR contracted by 6 bps to 5.33%.
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