The data of reserve bank of India showed that hike in the weighted average lending rates (WALR) of the fresh loans is more than that of the existing loans. An increase of 0.57 % has been seen in the rate from 11.46% to 12.03% for the fresh loans where the WALR for the existing loans has increased by 0.11%. It has been reported that due to the growing bad loans in banks, the lending rates of the fresh loans have increased more than that of the existing loans.
The WALR differential between the old and fresh loans has declined from 74 basis points to 28 basis points in the June quarter. PSU banks noticed a raise of 0.38% in the fresh loans. And foreign reported an increase of 1.58% of increase in WALR for fresh loans and the exisiting loans grew up by 0.62%. In private sector banks the WALR grew by 0.68% for fresh loans where as WALR has been constant.