Monday, April 1, 2013

Passing rate cut benefits: Banks face ALM hurdle

The RBI, over the last 12 months, has reduced interest rates by 75 basis points. The transmission of the cut by the banking system, in terms of lowering consumer level rates on loans, has been limited, largely due to the asset-liability mismatches (ALM) building up in the Indian banking system that has restricted the ability of the banks to transmit monetary easing.............

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