SCB spreads narrow to 2.54% as deposit costs rise

Scheduled commercial banks saw spreads between fresh lending and deposit rates compress by 13 basis points month-on-month to 2.54% in June 2026, as lending rates barely moved up 2 bps to 8.53%. Builders in lending platforms need to brace for tighter margins—the era of fat spreads is over, and profitability now hinges on scale and efficiency.

Source: ET BFSI ↗