Press Esc to close
Sunday 30 April 2017
News updated at 8:16 PM IST

Banks have room to lower lending rates, Patel tells MPC

DH News Service, Mumbai, Apr 20 2017, 23:40 IST
 RBI Governor Urjit Patel. File Photo

RBI Governor Urjit Patel. File Photo

RBI Governor Urjit Patel told the Monetary Policy Committee (MPC) that there is room for banks to further cut interest rate while sounding a note of caution on inflation front in the coming months.

The six-member MPC, headed by Patel, had opted for status quo on the benchmark policy rate (repo rate) on April 6.

“There is still room for banks to cut lending rates. For efficient transmission, it is important that interest rates on small savings are not out of line with interest rates on other comparable instruments in the financial system,” Patel said as per the MPC minutes released by the RBI on Thursday.

The weighted average lending rate of banks has come down only by 0.85-90% against a 1.75% cut in policy rates since January 2015.

Go to Top

Photo Gallery
Laborers carrying bricks at a brick factory on the eve of International labour day on the outskirts.

Laborers carrying bricks at a brick factory on the eve of International labour day on the outskirts.

A laborer carries a sack of grain at a market on the eve of International labour day, in Bikaner...

A laborer carries a sack of grain at a market on the eve of International labour day, in Bikaner...

Roger Federer, of Switzerland, left, and Microsoft founder Bill Gates, right, celebrate...

Roger Federer, of Switzerland, left, and Microsoft founder Bill Gates, right, celebrate...

A decorated home at Bhilar village, India's first 'village of books' where Around 15,000 books...

A decorated home at Bhilar village, India's first 'village of books' where Around 15,000 books...

Bollywood actor Ranveer Singh during a promotional event, in Mumbai on Saturday...

Bollywood actor Ranveer Singh during a promotional event, in Mumbai on Saturday...

An elephant calf gets a shower on a hot summer day at Anna National Zoological Park, in Chennai...

An elephant calf gets a shower on a hot summer day at Anna National Zoological Park, in Chennai...

Indian team celebrates their win over New Zealand in their second match at the 26th Sultan Azlan...

Indian team celebrates their win over New Zealand in their second match at the 26th Sultan Azlan...

An albino peacock displays its feathers on a hot summer day at Anna National Zoological Park...

An albino peacock displays its feathers on a hot summer day at Anna National Zoological Park...

A helicopter carrying the body of famed Swiss climber Ueli Steck arrives at Teaching Hospital...

A helicopter carrying the body of famed Swiss climber Ueli Steck arrives at Teaching Hospital...

A security person keeps tight vigil as the vehicles loaded with official documents moving toward...

A security person keeps tight vigil as the vehicles loaded with official documents moving toward...

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
Powered by Yodasoft Technologies Pvt. Ltd.