Welcoming the RBI credit policy, most bankers on Tuesday signaled reduction in interest rate on loans following the central bank's decision to cut repo and CRR by 25 bps.
Commenting on the credit policy, Chanda Kochhar, managing director & CEO, ICICI Bank said, 'While the rate cut signals a monetary policy stance that is more supportive of growth, the CRR cut complements the same by seeking to address liquidity conditions and will facilitate transmission of the monetary policy stance into lending rates.''
Both Aditya Puri, managing director, HDFC Bank and RK Kamath, chairman and managing director, Punjab National Bank said most banks will consider monetary policy transmission to borrowers.
However, Kochhar expects deposit rates will not go down from current levels.
While Seshagiri Rao, JMD & Group CFO, JSW Steel said the transmission of lower interest rate to borrowers in response to cut in repo rate should take place swiftly as the banks have already reduced deposit rates for the past few months.