Country's largest mortgage lender HDFC and four other lenders, including Canara Bank and StanChart, cut their base rates by up to 0.25 percent, a move that will make home, auto and other loans cheaper.
A number of banks including state-run PNB, IDBI Bank and Bank of Baroda, as also private sector lender Axis Bank Wednesday lowered lending rates -- a day after RBI surprised with a larger-than-expected policy rate cut and prodded banks to pass on the benefits.
Reserve Bank Governor Raghuram Rajan on Tuesday said the RBI is looking into banks' concern over adopting the marginal cost-based base rate regime but made it clear the lenders will have to follow the new computation methodology.
After lowering the interest rate by 50 basis points to boost economy, Reserve Bank Governor Raghuram Rajan on Tuesday said the RBI will work with the government to ensure a faster transmission and also hoped that banks will pass on the benefits to customers.
Finance Minister Arun Jaitley on Tuesday welcomed Reserve Bank's cutting the key interest rate by 0.5 percent, nudging banks to transmit the benefit to borrowers so as to boost investments and the economy.
RBI on Thursday allowed banks to upgrade credit facilities of borrowing entities whose ownership has been changed outside strategic debt restructuring scheme (SDR) to "Standard" category upon change in ownership.
The “in-principle” approval granted will be valid for 18 months to enable the applicants to comply with the requirements under the guidelines and fulfil other conditions as may be stipulated by the RBI.
As a nationwide strike of trade unions hit banking and other services Wednesday, business chambers today pegged the loss to the economy at a staggering Rs 25,000 crore and said such "disruptive" actions can hit India's image as an attractive business destination.