Banks say no room to cut lending rates, thwarting RBI easing

Only three of India’s 45 commercial banks have cut base lending rates since the Reserve Bank of India’s surprise easing this month, hurting the government’s drive to lift business investment.Bank executives insist they cannot lower loan rates despite the official rate cut because cash conditions are tight, and money markets are little changed since the cut, but RBI insiders see that as more an excuse to protect profit margins.

 

Source : http://in.reuters.com/article/2015/01/30/india-banks-lending-rbi-idINKBN0L30ZV20150130

Be the first to comment

Leave a Reply