Weighted average lending rates on fresh rupee loans increased by 10 basis points to 8.71% by the end of November 2025, according to RBI data. State-run banks saw the largest hike, increasing rates by 16 basis points to 8.05%, while private banks' rates remained stable. This rise is attributed to hardening 10-year sovereign bond yields and slow deposit growth, which limit banks' ability to pass on policy rate cuts to borrowers. System liquidity has been tight, impacting banks' capacity to offer lower lending rates.