Press Esc to close
Monday 26 January 2015
News updated at 10:30 PM IST
Weather
Max: 26°C
Min : 18°C
In Bengaluru
Sunny day

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
India's BSF 'Daredevils' motorcycle riders perform stunts as they take part during Republic Day...

India's BSF 'Daredevils' motorcycle riders perform stunts as they take part during Republic Day...

Make in India tableau on display during the 66th Republic Day parade at Rajpath...

Make in India tableau on display during the 66th Republic Day parade at Rajpath...

Prime Minister Narendra Modi paying homage at Amar Jawan Jyoti during the 66th Republic Day...

Prime Minister Narendra Modi paying homage at Amar Jawan Jyoti during the 66th Republic Day...

Pranab Mukherjee with Obama and Modi during an At-Home reception...

Pranab Mukherjee with Obama and Modi during an At-Home reception...

BSF officials perform during the 66th Republic Day Celebration at Attari Border in Amritsar...

BSF officials perform during the 66th Republic Day Celebration at Attari Border in Amritsar...

Illuminated Raisina Hill on the occasion of Republic Day in New Delhi...

Illuminated Raisina Hill on the occasion of Republic Day in New Delhi...

Amit Shah, Sonia Gandhi, Venkaiah Naidu and others using umbrellas as it rains...

Amit Shah, Sonia Gandhi, Venkaiah Naidu and others using umbrellas as it rains...

Mechanised columns on display during the 66th Republic Day parade at Rajpath...

Mechanised columns on display during the 66th Republic Day parade at Rajpath...

A view shows Indian Army soldiers marching past the India Gate during the Republic Day...

A view shows Indian Army soldiers marching past the India Gate during the Republic Day...

Navy's women contingent marches during the 66th Republic Day Celebration...

Navy's women contingent marches during the 66th Republic Day Celebration...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523