The decline in the weighted average lending rate on fresh and outstanding rupee loans was higher in the case of private banks relative to public sector banks, according to the Reserve Bank of India’s (RBI) Bulletin.

Weighted average lending rate (WALR) on fresh rupee loans for private banks declined 62 basis points (Bps), compared to 46 bps for PSU banks.

Similarly, WALR on outstanding rupee loans declined by 53 bps for private banks as compared to 44 bps for state-owned lenders.

This is after the RBI cumulatively reduced repo rate by 100 bps during February to August.

The weighted average lending rate on fresh and outstanding rupee loans of scheduled commercial banks declined by 53 bps and 49 bps, respectively, in the current easing phase.

However, on the deposit side, transmission

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