Bank lending rates declined for the first time in April after rising for 11 consecutive months, data from the Reserve Bank of India showed. The decline in average lending rates was nearly 23 basis points month-on-month. Average lending rates dropped to 9.09% in April from 9.32% in March.
One basis point equals 0.01%.
Analysts are crediting this drop to seasonality in the credit cycle when growth remains tepid in the first quarter. While both sets of banks saw a month-on-month dip, it was higher for private banks at 44 bps versus 18 bps for public sector banks.
Source:
Economic Times
