Mixed reactions from Banks, Economists, India Inc on RBI Annual Policy Statement for the Year 2009-10
O P Bhatt, Chairman, State Bank of India: "It (the RBI rate cuts) is a very clear-cut signal that interest rates should ease."
K V Kamath, MD & CEO, ICICI Bank: Describing the RBI's stance as an "innovative and far- reaching policy Mr Kamath, said it would have a significant impact on spurring economic growth.
Yogesh Agarwal, CMD, IDBI Bank: The cut in policy rates by RBI was aimed at easing the liquidity situation, but the bank would watch the market conditions before revising its rate-structure.
M D Mallya, CMD, Bank of Baroda: RBI has given a strong signal that interest rates should ease. It is for individual banks to find out how they can balance their asset and liability position, he added. "There would be a downward bias on interest rates. We need to see several things... the cost of deposit has to decline," he said.
M S Sundararajan, CMD, Indian Bank: “It is a signal for softer interest rates and banks will also address correspondingly.”
Romesh Sobti, MD & CEO, IndusInd Bank:
The cut in the Repo Rate is a facilitating nudge to the downtrend in lending rates as RBI remains concerned about the lag between cut in Policy Rates and lending rates of banks. The benefit will definitely will accrue to borrowers with a downward shift in rate structure
Rana Kapoor, MD & CEO, YES Bank: The RBI has hit the pause button after four months of persistent monetary easing since October 2008. Slowing growth remains a concern. "With limited headroom in further fiscal accomodation, the onus was largely on monetary policy measures to step up growth," Mr Kapoor said.
Chanda Kochhar, Joint MD, ICICI Bank: The proactive stance in the current environment is commendable and the continued support to systemic liquidity and lower interest rates is welcome. The policy also strikes a good balance between promoting growth and financial sector development and stability. Overall, the policy indicates development of a healthy financial sector and a stable macroeconomic environment, Kochhar said. The credit policy statement is a welcome articulation of a growth oriented policy stance, she added.
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