Apart from Axis Bank, ICICI Bank, HDFC and SBI have also reduced rates. The move comes after Dr. Raghuram Rajan's criticism of lenders yesterday after he announced the first bi-monthly policy of RBI for 2015-16.
In a classic case of 'spiral effect', Axis Bank has reduced base rate by 20 bps to 9.95%, following the footsteps of other major banks like SBI and HDFC, after the critical comments by Dr. Raghuram Rajan on the public and private lenders who have failed to pass on the benefits to the consumers, even when the RBI had cut rates. This new rate from Axis Bank will be effective from 13th April, 2015.
SBI lowered its base rate by 15 basis points — from 10% to 9.85%. HDFC Bank lowered its base rate by 15 bps to 9.85%, while ICICI Bank cut it by 25 bps to 9.75%. The SBI rate cut is effective from April 10.
Following SBI and HDFC Bank, small banks such as Lakshmi Vilas Bank have also announced a rate cut.
The cut in interest rates is expected to bring some relief to corporate and retail borrowers including for home and auto loans.
The notion that banks' cost of funds hasn't fallen is "nonsense", RBI governor Dr Raghuram Rajan said at a press conference on Tuesday, coming down heavily on lenders for not passing the benefits of lower interest rates to consumers.
Dr Rajan announced the First Bi-monthly Monetary Policy Statement for 2015-16 on Tuesday. Rajan decided to keep the repo rate unchanged at 7.50 per cent citing banks not transmitting the rate cut to end borrowers.
"I do not see an environment where credit growth is tepid, banks are sitting on money and their marginal cost of funding (has) fallen, the notion that it hasn't fallen is nonsense, it has fallen," Rajan said.
SBI lowered its base rate by 15 basis points — from 10% to 9.85%. HDFC Bank lowered its base rate by 15 bps to 9.85%, while ICICI Bank cut it by 25 bps to 9.75%. The SBI rate cut is effective from April 10.
Following SBI and HDFC Bank, small banks such as Lakshmi Vilas Bank have also announced a rate cut.
The cut in interest rates is expected to bring some relief to corporate and retail borrowers including for home and auto loans.
The notion that banks' cost of funds hasn't fallen is "nonsense", RBI governor Dr Raghuram Rajan said at a press conference on Tuesday, coming down heavily on lenders for not passing the benefits of lower interest rates to consumers.
Dr Rajan announced the First Bi-monthly Monetary Policy Statement for 2015-16 on Tuesday. Rajan decided to keep the repo rate unchanged at 7.50 per cent citing banks not transmitting the rate cut to end borrowers.
"I do not see an environment where credit growth is tepid, banks are sitting on money and their marginal cost of funding (has) fallen, the notion that it hasn't fallen is nonsense, it has fallen," Rajan said.
No comments:
Post a Comment