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One basis point is a hundredth of a percentage point.
The rise from 8.28% in December was primarily driven by a 44-basis point increase in WALR by state-run banks to 8.05%, while private sector banks recorded an 18-basis point increase to 9.32%.
The Reserve Bank of India (RBI) has reduced its repo rate by 125 basis points to 5.25% over the course of 2025.
In contrast, the WALR on outstanding rupee loans of commercial banks declined marginally to 9.04% in January 2026 from 9.06% in December 2025.
The one-year median Marginal Cost of Funds-based Lending Rate (MCLR) increased to 8.45% in February 2026 from 8.40% in January 2026.
Meanwhile, the weighted average domestic term deposit rate (WADTDR) on fresh rupee term deposits stood at 5.66% in January 2026, slightly lower than 5.67% in December 2025. The WADTDR on outstanding rupee term deposits declined to 6.64% in January 2026 from 6.68% in the previous month.
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https://economictimes.indiatimes.com/markets/stocks/news/average-lending-rates-on-new-loans-firm-up/articleshow/128873601.cms
