Post the Reserve Bank of India reducing the Cash Reserve Ratio (CRR) by 50 basis points, speculations about lowering of lending rates were being made. The move from RBI is expected to ease liquidity as well the inflation in the markets.
However, the Managing Director and Chairman of Corporation Bank, Mr. Ajai Kumar has rejected the possibility of any such move.
"The cost of fund has not gone down," said Mr. Ajai Kumar.
"The previous rate hike has not been transmitted into the banking system," he said.
He also said, "There have been clear signs of the economy slowing down. RBI has tried to pump in liquidity to push growth."