When everyone was expecting the rise in rates, Reserve bank of India surprised banks by keeping the rates same. However this has bring the moment of happiness for the banks but the borrowers still need to wait to celebrate this moment, since the banks are reluctant to lower the rates.
There is a significant improvement in liquidity condition of the banks. RBI measures since September has helped the banks a lot in improving the situation. It was expected the base rate will rise by 0.25 or 0.50 bps, but RBI kept it same 7.75%, which gave a big sigh of relief to the bankers. Hither to the PSU banks HDFC, SBI banks raised the lending rates in last month. Banks are not ready to cut the rates yet. There is a significant improvement in liquidity condition of the banks.