Press Esc to close
Monday 20 February 2017
News updated at 8:58 AM IST
Weather
Max: 29.3°C
Min : 15.9°C
In Bengaluru
clear sky

Bankers see 50 bps cut in Jan

Mumbai, Dec 18, 2012, (PTI):
Bankers are expecting a 0.5 per cent reduction in key short-term lending rate by RBI in January after the central bank’s policy review kept rates unchanged, but gave sufficient hints of a rate cut next month.

Bankers also said a cut in interest rates is unlikely for the time being.
“I personally feel that in the January policy there will not be a baby-step cut of the repo but a higher, say 50 bps (0.5 per cent) cut,” Indian Overseas Bank Chairman and Managing Director M Narendra said.

ICICI Bank CEO and Managing Director Chanda Kochhar said, “RBI has indicated monetary policy easing in the coming quarter. This signal of a shift in the focus of monetary policy from inflation to growth is a welcome move.”

Earlier in the day, the apex bank left key policy rates - the repo - and cash reserve ratio unchanged at 8 and 4.25 per cent respectively.

Bankers also said that RBI policy review has given them clarity to price their products, including deposits.

While ruling out any immediate lending rate cut, Indian Overseas Bank said that “overall the policy review is very favourable to banks as it has given us clear indication on inflation, which is heading down, and also a clearer view that a larger repo cut is on the way.”

Narendra pointed out that there is a firm indication to banks that they can cut deposit rates as RBI has clearly said interest rates are going to come down going forward.

HDFC Vice-Chairman and CEO Keki Mistry said, “We will see lower interest rates in 2013. I expect RBI to cut rates by 0.50 per cent before March and more rate cuts from April.”

 

Go to Top

Photo Gallery
Theater Person Lakshmi Chandrashekar in an interview to Prajavani Metro for ' Naa Kanda...

Theater Person Lakshmi Chandrashekar in an interview to Prajavani Metro for ' Naa Kanda...

A n aircraft take off in a backdrop of sun set on the last day of the 11th biennial edition...

A n aircraft take off in a backdrop of sun set on the last day of the 11th biennial edition...

A Truck caught fire , at Road in Tinsukia, Assam on Saturday...

A Truck caught fire , at Road in Tinsukia, Assam on Saturday...

Virat Kohli speaks at 49th All India Central Revenue Sports Meet ...

Virat Kohli speaks at 49th All India Central Revenue Sports Meet ...

Indian Air Force's helicopter aerobatic team 'Sarang' on the last day of the 11th Biennial edition..

Indian Air Force's helicopter aerobatic team 'Sarang' on the last day of the 11th Biennial edition..

Skycat Wingwalkers, the Scandinavian aerobatic team, makes a heart on the last day of AERO INDIA...

Skycat Wingwalkers, the Scandinavian aerobatic team, makes a heart on the last day of AERO INDIA...

A three-months-old hippopotamus is seen with its mother Pippa at the Le Cornelle Animal Park...

A three-months-old hippopotamus is seen with its mother Pippa at the Le Cornelle Animal Park...

Bollywood actor Neil Nitin Mukesh with his wife Rukmini during their wedding reception in Mumbai...

Bollywood actor Neil Nitin Mukesh with his wife Rukmini during their wedding reception in Mumbai...

A ball of fire from explosives goes up during the ongoing U.S.-Thai joint military exercise...

A ball of fire from explosives goes up during the ongoing U.S.-Thai joint military exercise...

Sibrerian birds frolic over Narmda River waters in Jabalpur...

Sibrerian birds frolic over Narmda River waters in Jabalpur...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523