Private Banks - Spread Performance Improves In July: Systematix
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Systematix Research Report
During July 2021, the banking system’s fresh loan lending rate witnessed an uptick while the weighted average term deposit rate declined.
Banks’ outstanding loans lending rate remained stable.
The sectoral credit deployment data for the month indicates some building-up of credit risk by banks - reflected in the rise in fresh loan lending rates on a month-on-month basis especially for private banks.
Our estimation of spreads on various benchmarks reveals that private banks performed better than public sector banks despite having a higher proportion of loans linked to the external benchmark linked lending rate.
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