Banks rule out deep rate cuts for India Inc
Posted on Wed Jun 03, 2009 at 12:52:38 AM EST
LEADING banks have told corporates that there can be no dramatic reduction in lending rates. While the government is nudging banks to cut interest rates, the latter have told apex industry bodies that rates cannot be lowered to the extent demanded by corporates.In a meeting last week, the Indian Banks' Association (IBA), an association of bank managements, spelt out its views to the Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (Ficci)."We have told corporates that lending rates can be cut by 50-100 basis points (bps) from the current level in the near to medium term," said a bank CEO who attended the meeting. Corporates have asked for a 400-500 basis point cut in lending rates in the near future.
Source : http://naredco.blogspot.com/2009/06/banks-rule-out-deep-rate-cuts-for-india.html
By djain128, Section Banking & RBI
Posted on Wed Jun 03, 2009 at 12:52:38 AM EST
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