Banks Likely To Reduce Interest Rates After RBI's Repo Rate Cut: Report

Banks Likely To Reduce Interest Rates After RBI's Repo Rate Cut: Report

With the RBI's 50 basis points cumulative reduction in policy rates since February this year, transmission of the rate cut by banks is expected in the coming quarters, according to an SBI report. The report points out that following the RBI's 25 basis point cut in repo rate in February, public sector banks reduced deposit rates by 6 basis points, and foreign banks reduced 15 basis points, while private banks increased the rate by 2 basis points.…

Home loan: SBI, PNB, BoI, Indian Bank have trimmed rate after RBI rate cut

Kolkata: A giant step for an individual, a small step for the country’s economy. You can easily turn around the famous words of Neil Armstrong to describe the impact of a home loan. A home loan is not only the biggest financial transaction in the life of an average individual but also has a multiplier effect in the country’s economy since buying a new home has a spiraling effect on several industries such as steel, cement, paint, bricks, home de…

RBI Update - Penal Interest on shortfall in CRR and SLR requirements-Change in Bank Rate. (Applicable - All banks) - Mehta & Mehta

The Bank Rate is revised downwards by 25 basis points from 6.50 per cent to 6.25 percent with immediate effect. Accordingly, all penal interest rates on shortfall in CRR and SLR requirements, which are specifically linked to the Bank Rate, also stand revised as under: ItemExisting RateRevised Rate(With immediate effect)Penal interest rates on shortfalls in reserve requirements (depending on duration of shortfall).Bank Rate plus 3.0 percentage po…

Savers, Brace for Impact: Deposit Rates Set to Fall as RBI Cuts Repo Rate

The Reserve Bank of India's decision to reduce the repo rate by 25 basis points has created renewed worries for depositors and savers, even as borrowers greet the decision with smiles. Over the last two months, the repo rate has been trimmed by a total of 50 basis points, a cut that is a signal change in the RBI's stance even as inflation remains muted and growth remains fragile.  There is no question that this is a benign development for those …

Banks may lower interest rates following RBI's policy cut: SBI report

In another key move, the RBI is looking into expanding co-lending arrangements beyond just banks and NBFCs offering priority sector loans.

The impact of the Reserve Bank of India's decision to cut the repo rate has started to be seen within a few hours. In fact, the RBI's monitoring policy meeting was going on for the last three days, in which a decision was to be taken on the reduction in interest rates. After this meeting held at 10 am today, RBI Governor Sanjay Malhotra ordered a reduction in the repo rate by 0.25%, the impact of which was seen in the decisions of BOI and UCO Ba…