The Reserve Bank of India cut interest rates for a fourth straight meeting in 2019
Goyal said the ministry is in dialogue with banks to see ways to extend foreign currency loans to exporters
The apex bank has already prescribed a deadline for the implementation of new benchmark rates from April 1
RBI expects India's growth rate to rise from 7.2% in 2018-19 to 7.4% in 2019-20
Instead of moving the whole banking system to a new lending regime, a practical way forward would be to let the banks continue with the existing system, duly addressing its weaknesses, if any
The MCLR for a three-year tenor increased to 8.45 per cent from 8.35 per cent earlier
The cost of funds also fell from 6% to 5.42%. However, their NIM contracted by 26 bps to 2.45% in Dec '17
Let market forces play their part in enabling competitive pricing and innovation by banks
External benchmark could lead to extreme volatility in the interest rate process, say lenders
According to BofAML, growth is stuck at an 5% (in old GDP series), well below estimated 7% potential
Four public sector lenders, including Indian Bank and Vijaya Bank, today cut their benchmark lending rates by up to 0.45 per cent. Punjab & Sind Bank reduced the overnight marginal cost of funds based lending rate (MCLR) by 0.45 per cent to 8.15 per cent from 8.60 per cent. It reduced the one-month MCLR by 0.40 per cent to 8.20 per cent, while one-year lending will be cheaper by 0.15 per cent to 8.55 per cent. Chennai-based Indian Bank reduced the MCLR across all segments by 0.15 per cent. Vijaya Bank tweaked interest rates in two segments, including for one-year tenor which will become cheaper by 0.15 per cent to 8.50 per cent. IDBI Bank also reduced MCLR by 5-10 bps across various tenors. "The reduction in MCLR is expected to positively impact loan growth, thereby supporting the growth impulses in the economy," the bank said in a statement. With the reduction in benchmark rates, home, car and other loans linked to MCLR would become cheaper. Banks switched to MCLR as .
According to BofAML, reduction in lending rates might trigger high level of liquidity in banks
The new rates will be effective from November 1
SBI cuts lending rate by 90 bps; PNB, Union Bank follow suit with 70 bps and 65-90 bps respectively
The new rate will be effective from November 1
OBC, United Bank reduce marginal cost of funds based lending rate a few days after RBI cuts repo rate by 0.25 per cent
A report by BofA-ML also said that the RBI is expected to cut rates 25 bps on August 9
SBI chairman says transmission only after deposit rates come down