In a sign that lenders are adopting a more cautious approach towards loan pricing, rates across the board have been on the rise in the past couple of months. As a result, they are recalibrating their lending strategies by increasing mark-ups on new loans, a move driven by the need to protect margins amid shifting interest rate dynamics.

While weighted average lending rates on outstanding rupee loans continued their downward glide from 9.67% in May to 9.38% in July, the fresh rupee loans saw a reversal. After bottoming out at 8.62% in June, fresh lending rates edged up to 8.80% in July, signaling a hardening stance among banks towards new credit disbursement.

Subsequently, the weighted average domestic term deposit rates have declined at a slower pace. For fresh deposits, rates fell from

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