<b>Letters:</b>Set the house in order

With reference to the editorial, “Wise caution” (February 9), a major argument against reduction of repo rates is that banks do not pass much of the benefit to their lenders. While the Reserve Bank of India (RBI) has reduced rates by 175 basis points during the last 18 months, banks have confined the transfer to about 50 per cent.

Although banks are flush with deposits after demonetisation, they are reluctant to lower lending rates. They are yet to overcome the psychological effect of high non-performing assets.

Also, it is time for industry to set its house in order in terms of product proactive leadership, quality, customer service and optimum utilisation of resources.

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