After the announcement of the rates in sixth bi-annual monetary policy by the Apex bank, the Executive Vice Chairman of the Kotak Mahindra bank stated that banks might cut the lending rates by the next quarter. It was further stated that Banks are expected to cut down the rates by this quarter or the next quarter.
Bankers will observe and look at cost of funds before revising rates. Currently the repo rate is 7.75%. He also stated that Budget is very important as the new government will announce a whole vision for the next five years.