State Bank of India was first to announce 10 bps cut in MCLR last week after Reserve Bank of India Governor Shaktikanta Das exuded confidence that previous policy rate cuts would translate into banks lowering lending rates even as the central bank kept repo rate unchanged in the last monetary policy.
The report comes amid turmoil in the north-eastern states over the new citizenship rules that became law on Thursday, and Japanese Prime Minister Shinzo Abe cancelling his India visit during which he was to hold the annual summit with his Indian counterpart, Narendra Modi, in Guwahati starting this Sunday.
Divergence in gross NPA is the difference in gross bad loans reported by banks and the assessment done by Reserve Bank of India. Allahabad Bank had reported Rs 28705 crore gross NPA as on March 2019 while RBI assessed its gross NPA at Rs 28772 crore.
Axis Bank managing director and chief executive Amitabh Chaudhry said the bank has studied the market but has not found a perfect match yet. "We are evaluating opportunities all the time," he said, adding that the microfinance firms, which are doing well and can be a good fit, are mostly overvalued. "Nothing is on the cards at present."
A surge in prices of onion and sugar has brought back the bad memories of farm economy roiling the rest.
“The forthcoming union budget will also provide better insight into further measures to be undertaken by the government and its impact on growth. Against this backdrop, the MPC judged that there is monetary policy space for further action, but it felt it appropriate to take a pause at this juncture.”
The central bank is expecting higher monetary transmission since the share of base rate loans, which have remained largely sticky, has come down. The marginal cost-based floating rate loans, which have annual resets, have become due.
The six-member monetary policy committee (MPC) vote was unanimous, RBI said in a release.
The complainants used two ATMs in this locality and were duped include customers of HDFC Bank and United Bank of India.
Indian banks have thin buffers against systemic NBFC stress, says Fitch.
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