50-bp cut in repo leads to in reduction of 10 bps in outstanding loans

Banks have reduced their repo-linked external benchmark-based lending rates by 50 bps, the same as the quantum of rate cuts so far

In response to the 50-basis point cut in the policy repo rate since February 2025, most of the banks have reduced their repo-linked external benchmark-based lending rates (EBLRs) by 50 basis points (bps). One basis point is a hundredth of a percentage point.  Consequently, the weighted average lending rate (WALR) on outstanding rupee loans of banks has declined by 10 bps; however, it has increased for fresh loans by 3 bps during February and March 2025. The median one-year MCLR has remained unchanged. On the deposit side, the weighted average domestic term deposit rates (WADTDRs) on fresh and outstanding deposits increased by 8 bps and 1 bp, respectively, during the same period.