Public, private sector banks act faster this time after rate cut
Lucknow: Public and private sector banks in the country were quicker this week in responding to the lending rate cut effected by the Reserve Bank of India on Tuesday last. Most of them had not shown this kind of hurry in the recent past.
Private sector major ICICI bank was double quick and reacted to the rate cut announcement within a few hours . Another noteworthy feature was that it implemented the cut from the first of the month.
While the RBI reduced the lending rate by 25 basis point ,it has cut the annual rate for its customers by five basic point-- from 9.10 to 9.05 per cent. The rate has been fixed at 8.85 per cent for one to three years' loan.
Some other banks including Bank of India and Syndicate Bank have been as quick, They announced the new rate , applicable from Friday. within two days of the RBI's monetary policy announcement.
The BOI has cut down home loan rate by ten basis point , while the Syndicate Bank has gone for five basis point cut.
The Marginal Cost for Funding or Lending Rate which is being worked out from this fiscal has also played a major role rate cut. Other banks are likely to follows suit soon.