Borrowers News

Axis Bank has increased its marginal costo of funds-based lending rate (MCLR) by 25 basis points. Reserve Bank of India (RBI) had increased the repo rate to 5.90 %. Now the overnight and one-month MCLR stands at 8.15%.

Resolution of bad loans in the banking system is on 'right track' and will 'open the door' to rapid credit expansion and growth, Niti Aayog Vice Chairman Arvind Panagariya has said.

The cut in the repo rate by RBI will help in lowering interest rate for individual and corporate borrowers. It will thus make home, auto and corporate loans cheaper.

Here are the experts' comments on RBI Monetary Policy Review.

In line with record low retail inflation, the RBI cut policy repo rate by 25 basis points to 6 percent and the reverse repo by similar proportion to 5.75 percent.

Here is the full text of RBI Monetary Policy Review

ICICI Bank on Monday reduced benchmark lending rate by 0.7 percent across various maturities.

A day after SBI slashed its rate offering steeply, country's fourth biggest private sector lender Kotak Mahindra Bank on Monday announced a cut of up to 0.45 percent in its lending rates.

In view of cash crunch being faced by borrowers, the RBI on Wednesday provided additional 90 days for repayment of housing, car, farm and other loans worth up to Rs 1 crore.

Urjit Patel-led 6-member Monetary Policy Committee, which had in its first policy review cut interest rate by 0.25 percent in October, belied expectations to keep benchmark repo rate unchanged at 6.25 percent unanimously.

In order to further strengthen the lenders’ ability to deal with stressed assets and to put real assets back on track by providing an avenue for reworking the financial structure of entities facing genuine difficulties, the Reserve Bank of India on Monday issued guidelines on a ‘Scheme for Sustainable Structuring of Stressed Assets’.

The Financial Stability Report has cautioned banks against loaning to highly leveraged corporates and said that default by just top three borrowers can result in 13 percent losses.

To ensure better transmission of its rate cuts to borrowers, RBI on Thursday said all banks will have to follow a new and uniform methodology from April next year to calculate base rate as per the marginal cost of funds.

India Inc raised about USD 3.16 billion in overseas borrowing in June, showing a rise of 67 percent over the year-ago month, RBI data showed Monday.

Reserve Bank on Thursday made a case for developing better strategies to deal with the problem of bad loans as hiding them would aggravate the situation for the banks as well as borrowers.

The central bank plans to talk with lenders about passing on interest rate cuts through lower lending rates, Reserve Bank of India Deputy Governor S.S. Mundra said on Friday.

To ensure hassle free credit to small borrowers, the RBI on Wednesday directed banks to do away with the practice of obtaining 'No Due Certificate' from individual loan takers.

In a pleasant surprise, RBI on Thursday cut its policy rate by 0.25 percent in the first reduction in 20 months and promised more, paving way for cheaper home and auto loans as also lower cost of funds for corporate borrowers.

Accusing some large borrowers of enjoying "riskless capitalism", RBI Governor Raghuram Rajan on Tuesday said such entities were responsible for making banks' credit profile unhealthy and these big clients were in effect becoming 'freeloaders' in the banking system.