RBI rate cut alone seen unlikely to spur cheaper loans

A rate cut by the Indian central bank next week will not be enough to spur banks to lower lending rates immediately, bankers said on Monday. Instead, Indian banks, saddled with high-cost, long-term deposits and narrowing profit margins, are hoping for a cut in the cash reserve ratio, which would boost liquidity and in turn lower the cost of funds, and would allow them to ease deposit and lending rates...............

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