Fresh loan rates rise despite RBI’s 125 bps repo cut
RBI said fresh rupee loan rates rose 21 bps in H1 FY27 despite a cumulative 125 bps repo cut, as credit growth outpaced deposits. OI Charts data showed mixed derivatives positioning across HDFC Bank, ICICI Bank and State Bank of India.
pre-market1 source ↓machine-written, see hownot a recommendation
- HDFCBANK close
- ₹706.95
- On the day
- -0.71%
- Futures OI, long unwinding
- -0.3%
- Put-call ratio
- 0.53
- Max pain
- ₹720.00
Fresh rupee loan rates rose in the first half of FY27 even as the Reserve Bank of India delivered a cumulative 125-basis-point repo rate reduction since February 2025. The weighted average lending rate on fresh rupee loans increased 21 bps during H1 FY27 through August, while the rate on outstanding rupee loans declined only 3 bps, according to the RBI’s October Bulletin.
The divergence points to uneven monetary transmission across the banking system 💼. Credit growth outpaced deposit growth, increasing banks’ funding pressure and limiting the scope to pass lower policy rates through to new borrowers. At the same time, weighted average domestic term deposit rates on fresh deposits moderated by 40 bps, while rates on outstanding deposits declined 6 bps. The RBI said transmission to deposit rates strengthened during H1, even as it moderated on the lending side.
Funding pressure is the key sector signal: banks are seeing loan demand run ahead of deposit mobilisation, while competition for liabilities and the repricing of loan books influence the final rate offered to borrowers. This can keep lending yields firm even when the policy rate is lower, but slower deposit-rate transmission may gradually reduce funding costs if deposit repricing continues.
OI Charts data as of 21 Oct 2026 showed mixed positioning across three large banks ahead of the 27 Oct 2026 derivatives expiry. HDFC Bank closed at ₹706.95, down 0.7% on the day and 4.4% over 20 sessions; its futures showed long unwinding, with open interest down 0.3%, a put-call ratio of 0.53 and max pain at ₹720. ICICI Bank rose 0.3% to ₹1,385 and gained 3.0% over 20 sessions, while futures showed short covering; its put-call ratio was 0.51 and max pain ₹1,360. State Bank of India fell 1.1% to ₹963 and was marked by short build-up, with open interest up 0.5%, a put-call ratio of 0.73 and max pain at ₹980.
Traders will watch upcoming RBI transmission data, deposit-growth trends and banks’ commentary on funding costs. The ₹720, ₹1,400 and ₹1,000 call open-interest zones, alongside the respective max-pain levels, mark the immediate derivatives reference points
Source: bfsi.economictimes.indiatimes.com, 23 Oct 2026
Not investment advice. For informational purposes only.