Bankers promise lower rates and other top Banking news of the day

Round up of the major headlines that dominated the Banking sector, nationally and internationally.

Reserve Bank of India governor Raghuram Rajan on Monday kept rates unchanged but said that he is pushing banks to pass on benefits of earlier rate reductions. In a dovish policy statement, Rajan said that the Indian economy was "truly in a recovery mode" and that Indian markets are expected to sail through the US Federal Reserve's expected rate hike next month.

Feeling the RBI heat for not passing on benefits of rate cuts fully to borrowers, bankers today promised that borrowers can look forward to lower rates even as Governor Raghuram Rajan decided to keep rates on hold today.

Credit demand has been passive during the first half on financial year (FY) 2016, given the slow-moving economic activity and moderate capital expenditure (capex) plans, according to report named Banking & Financial Services: A long and arduous wait for recovery, stay selective, by Emkay Global Financial Services Ltd.

The Reserve Bank on Tuesday said it will shortly announce methodology for determining the base rate taking into account the marginal cost of funds, a move aimed at ensuring that banks pass on policy rate cuts to borrowers.

With RBI Governor Raghuram Rajan keeping the repo rate unchanged on Tuesday, India Inc today called upon banks to fully transmit the rate cuts effected so far this year to revive weak rural demand and investments.

Thomas Cook (India) Ltd recently launched a foreign exchange (forex) app with features such as live rates of 26 currencies, buying and selling facility, currency alerts and converter, and reloading Thomas Card Borderless forex card with up to eight currencies.

HDFC Ltd has sold a part of the United Spirits shares pledged with it by Vijay Mallya. HDFC Ltd sold 1.5 lakh shares for a total value of nearly Rs 47 crore.

As banks reel under huge bad debts, RBI Governor Raghuram Rajan today said steps taken by the central bank and the government should help lenders clean up their balance sheets by March 2017