In March 2026, the weighted average domestic term deposit rate (WADTDR) for fresh rupee term deposits at commercial banks rose by 42 basis points to 6.07%, up from 5.65% in February, as reported by the Reserve Bank of India. This increase was primarily driven by private sector banks, which raised their deposit rates by 39 basis points to an average of 6.26%. Public sector banks also saw a rise, albeit at a slower pace, with rates climbing 24 basis points to 6.45%. Meanwhile, the weighted average lending rate (WALR) on fresh rupee loans slightly decreased by 4 basis points to 8.40%. The lending rates for private sector banks fell to 9.12%, while public sector banks maintained their rates at 7.84%. The one-year median marginal cost of funds-based lending rate (MCLR) increased to 8.55% in April 2026, indicating a mixed trend in lending rates across sectors. Analysts suggest that banks believe deposit rates have bottomed out and may continue to rise in the future.