It is time for banks to reduce lending rates across the board
................Around 50 per cent of the total deposits are bulk deposits, which are driven by market rates. HDFC Bank, the second biggest private lender, decided to selectively cut rates. A day after the RBI announcement, HDFC Bank cut interest rates in auto segment for the benefit of new customers alone — by 25 basis points for cars and trucks and by 50 basis points for two wheelers. In effect, RBI’s effort for a lower interest rate regime is stuck mid-way. It is time for banks to reduce lending rates across the board and step up lending.
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