Bankers say retail loan rates not to shoot up immediately
By Joseph Samson
Nov 3, 2010
Print    Email    RSS   

Reserve Bank of India has raised policy rates further by 25 basis points in order to check towering inflation figures. However, bankers have responded to the rise saying that it is not imperative that there would be a immediate corresponding rise in home, auto and corporate loans.

"The transmission mechanism between RBI and rest of the financial system does not work very fast. It always works with a time lag," said SBI Chairman O P Bhatt.

"So, whether it (hike by RBI) will raise pressure on the system. Eventually, it will. Whether there would be immediate reaction. Not likely," he said.

"There would be some banks who would be thinking of raising rates, it would be kicker for them. For other banks it may not be so. So there would be mixed reaction," he added.

With rise in policy rates, repo rate now stands at 6.25% and reverse repo rate is 5.25%.

Indian Bank Executive Director V Ramagopal said that if there is further tightening of liquidity and rise in credit offtake, interest rates would certainly rise.

Oriental Bank of Commerce Executive Director S C Sinha said, "I don't think there would be increase in interest rates as RBI move was already discounted."


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Credit score from CIBIL: will it really...
Credit profile and its effect on loan...
Six tips to choose your home loan lender
Are you ready to file your taxes? Please...
Refinancing your home loan: is it a...

Loan offer and we solve your financial problem....
PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive