Public sector bankers have realised the concept of prime lending rate has become irrelevant, with more than half of their borrowers raising money at much below the prime rate. Bankers also foresee a further cut in lending rates, triggered by a deposit rate cut.
The issues were discussed today at a meeting of public sector bankers with Vijay Kelkar, adviser to the finance minister.
In his first interaction with the managing committee of the Indian Banks
