Fresh lending spreads at India’s private banks increased by 22 basis points to 3.13% in July. That put them at almost twice the level seen at public sector banks, marking a clear difference between the two groups on this measure.

The improvement came as FCNR(B) inflows strengthened liquidity and helped private banks rely less on expensive wholesale funding. The report linked that easing of funding pressure to the wider spreads on fresh lending.

There is an important distinction for readers: the figures describe fresh lending spreads, rather than a stated increase in overall profits. Analysts cautioned that margin improvement could be gradual, so the July movement should not be read as confirmation of an equally quick recovery across banks’ earnings.

The supplied report does not identify individual banks, quantify the FCNR(B) inflows or specify the year for the July figures. It also provides no bank-wise comparison, leaving unclear how evenly the improvement was shared within the private banking group.