Report Say's - State-run banks to cut rates by 100-150 bps
The rate cut is expected before June 12
Public sector banks are reportedly planning to cut lending rates by 100-150 basis points within the next fortnight at the behest of the Finance Ministry. The rate cut is expected before June 12 when the finance minister is scheduled to meet the chiefs of public sector banks, according to a financial newspaper. However, Punjab National Bank (PNB) will not cut rates but will provide the benchmark for other public sector banks, says the business daily.
The rate cut is expected before June 12
Public sector banks are reportedly planning to cut lending rates by 100-150 basis points within the next fortnight at the behest of the Finance Ministry. The rate cut is expected before June 12 when the finance minister is scheduled to meet the chiefs of public sector banks, according to a financial newspaper. However, Punjab National Bank (PNB) will not cut rates but will provide the benchmark for other public sector banks, says the business daily. SBI is also expected to bring down its PLR, currently at 12.25%, in the next couple of weeks, the pink paper reports. SBI officials said the quantum of reduction could be anywhere between 25-75 basis points, as the fall in the cost of funds is not high for the bank. SBI has cut its deposit rates across all maturities by 50 basis points with effect from May 18 to bring down the cost of funds.
The newly elected Finance Minister, Pranab Mukherjee will be meeting chieftains of the public sector banks in the second week of June to ensure that the cut in policy rates is transmitted and credit flow remains robust, according to the financial newspaper.