Banks rules out cut in lending rate, expects rate cuts in July by RBI
By Neelima Shankar
Jun 18, 2013
Print    Email    RSS   

As the Reserve Bank of India has kept the key rates unchanged, banks rules out the possibility of cutting lending rates. Bankers said that the RBI's decision to keep rates unchanged was on expected lines given the high current account deficit and troubles on rupee.

State Bank of India Managing Director and Chief Financial Officer, Mr. Diwakar Gupta said there is room for the RBI to look at the long term and not too much on the short term issues like rupee fall and the CAD.

"Therefore, I expect them to do something on the next policy day as inflation is under control," Mr. Diwakar Gupta said, adding that food inflation is a structural issue and not driven by money supply.

Mr. Gupta said expressing his concern over balance of payment, "Our problems on the BoP will remain so long as we remain a services-driven economy and not a manufacturing one."

"The recent depreciation of the rupee and the absence of any uncertainty about its future course warranted holding action by the RBI," HDFC Bank said in a statement.

"Prudence pays, especially for a central bank that's attempting to manage an economy buffeted by adverse external pressures and extreme uncertainty in the global policy environment," HDFC Bank added.

Bank of India's CMD-Mr. V R Iyer said the RBI move to hold the repo rate at 7.25 per cent was expected given the troubles on the rupee and the current account deficit.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Gold ETFs or Gold Funds: Which One Should...
Financial planning: a tool to retire...
FMPs or FDs: Make an informed choice
Fixed Deposits: Safest instrument to invest
An Overview of Wealth Management Services...

Sakeela.CaℒL Giℛℒs In Kharar 0985566O911...
NANGAL: CaℒL Giℛℒ In Una 09855660911 Escoℛt...
Chandigarh@CaℒL Giℛℒ In Rajpura +O9855660911...

Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive