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Gap between outstanding lending rates and fresh loans rises in August


The gap between outstanding and fresh lending rates was up 10 bps m-o-m in August 2019 to 75 bps. The gap has been broadly in the range of 50-70 bps since July 2018.

The spread for private banks was up 15 bps m-o-m to 100 bps in August 2019 while that of PSU banks was up 10 bps m-o-m to 75 bps.

As per Reserve Bank of India (RBI’s) latest release, fresh lending rates declined marginally to 9.7%. Term deposit rates have been flat month-on-month (m-o-m) at 6.85%. The gap between outstanding loan and fresh loan rates ...


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