Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,968.40-30.7
Stock Analysis, IPO, Mutual Funds, Bonds & More

What banks may now charge you for a loan

Larger banks with significant share of current account and savings account deposits may be in a better position to mitigate the cost effect.

, ET Bureau|
Sep 06, 2019, 08.58 AM IST
0Comments
Getty Images
loan-getty
With competition rather stiff for deposits, the central bank mandate might pressure net interest margins at high-street lenders.
The Reserve Bank of India (RBI) has made it mandatory for banks to link their loans to retail borrowers and micro, small and medium enterprises (MSMEs) to external interest rate benchmarks as the central bank seeks faster transmission of its rate action.

External benchmarks include repo (or the policy rate at which banks borrow short-term money from RBI), and treasury bills with three and six-month maturities. With competition rather stiff for deposits, the central bank mandate might pressure net interest margins at high-street lenders. Larger banks with significant share of current account and savings account deposits may be in a better position to mitigate the cost effect, analysts said.

ET brings you a rate table showing how top five banks by total asset value are charging retail loans and credit to MSMEs.
loan-graph

Also Read

Consumer loans growing but some vintage loans indicate higher risk: CIBIL

Demand for vehicle loan shrinks

Demand for vehicle loan shrinks

Sebi tightens disclosure norms on loan defaults

Top 10 banks' home loan interest rates

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service