FinMin to ask PSU bank chiefs to pass on benefit of rate cut to borrowers
By Neelima Shankar
Jun 14, 2013
Print    Email    RSS   

Finance Minister, Mr. P Chidambaram has called a meeting of PSU bank chiefs and would ask them to pass on the benefit of rate cut by RBI to borrowers.

"I have called the chairpersons of public sector banks towards the end of this month and have a chat on these issues. We will talk to the banks. I think they are cautious. Caution is good, but you can't be overcautious," FinMin said.

Mr. Chidambaram also said that although reserve Bank of India has reduced the policy rates by 1.3 per cent since January 2012, banks have lowered the lending rates by only 0.3 per cent.

The industry has been complaining about the banks not passing on the benefit of rate cut to corporates and retail borrowers.

The pressure is mounting on RBI to cut the interest rates to boost industrial growth, which declined to 2.2 per cent in April this year.

Mr. Chidambaram further said that PSU banks would require Rs 15,000-20,000 crore worth capital per year for the next five years to meet the global capital adequacy norms.


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

 Select a product:

PPF- How good an investment option!!
Steps to file Income Tax return online
Personal Finance for the 21st century...
Carnival of Indian Personal Finance Blogs #3
Carnival of Indian Personal Finance Blogs #4

How to know Andhra Bank account holder name and...
SK AFTAB AC/ NO:33316067146 IFC CODE : SBIN0001792...
last six months statement

HDFC bank adjudged as the Best private bank in India Feb 16, 2015
HDFC reported an increase of 20% in its net profit Feb 16, 2015
ICICI bank launched Flash remit facility Feb 13, 2015
BOM launched new savings deposit scheme for HNI customers Feb 12, 2015
BMB bank to have a total of 80 branches by the March end. Feb 10, 2015
News Archive