63 per cent. “Perhaps more important at this juncture is to ensure that current and past policy rate cuts transmit to lending rates.10 per cent, lower than our earlier base rate of 9. Repo rate is a factor that influences the MCLR rates, but there are other factors that affect deposit rates like competition and business outlook for deposits.The marginal غير مجاز مي باشدt of funds-based lending rate (MCLR) system is expected to impart greater transparency in the pricing of credit and improve the transmission of policy rate into the lending rates. Mumbai: Hopes of your home loan EMIs coming down immediately have been dashed because banks on Tuesday said further reduction in lending rates will take another three months. Our ALCO will meet next week to decide on interest rates.The Reserve Bank of India (RBI) cutting the repo rate by 25 basis points and introducing many measures to ease liquidity for banks. We had also reduced our base rates last quarter by 25 basis points. This is despite the Reserve Bank of India (RBI) cutting the repo rate by 25 basis points and introducing many measures to ease liquidity for banks. Liquidity is still tight. According to the RBI’s monetary policy report , the median overnight MCLR of 26 banks, accounting for about 83 per cent of total bank credit, was 50 bps lower than the median base rate, while the median MCLR across all tenors was lower by 25 basis points.IDBI Bank chief financial officer at IDBI Bank N S Venkatesh, said, “Banks have to review MCLR once a month and the rates for April have already been announced. Any further reduction in MCLR will follow a reduction in deposit rates.

Hopes were also high because inflation-- hot mounting press machine Manufacturers another reason for high interest rate-- has remained within the targeted level of the central bank.”“The reduction in small savings rates announced in March 2016, the substantial refinements in the liquidity management framework announced in this policy review and the introduction of the marginal غير مجاز مي باشدt of funds based lending rate (MCLR) should improve transmission and magnify the effects of the current policy rate cut,” he said. The overnight MCLR rate is 9. Repo rate has a direct impact on base rate and hence lending rate. At the same time, for home loan borrowers where the benchmark rate is linked to base rate may see some reduction in base rate and the proportion of high غير مجاز مي باشدt of deposit may come down with respective maturities. While my one-month MCLR is 9. Existing borrowers, however, would have to wait till banks cut their base rate. The Reserve Bank’s 25-basis point cut in repo rate fell below expectation.”Vibha Batra, group head of ICRA, said, “For new home loan borrowers, MCLR will be applicable which would change only when incremental غير مجاز مي باشدt of funds fall.RBI governor Raghuram Rajan in press conference after announcing the rate cut said that the central bank has reduced rates by 150 bps since the easing cycle began.A senior official of a mid-sized public sector bank said, “We had already factored the 25 basis points rate cut by RBI in MCLR that are applicable to new loans.20 per cent, earlier I was charging 9.”.Banks said they had already announced their marginal غير مجاز مي باشدt-based lending rates (MCLR) effective this month, which are lower by 50 basis points than base rates and would benefit new home loan borrowers.Dena Bank executive director RK Thakkar said, “Banks would first consider cutting deposit rates and once their غير مجاز مي باشدt of funds comes down, banks will cut base rate which could take three months.”

Federal Bank MD and CEO said Shyam Srinivasan, “We just launched our MCLR rate three days back. Our median MCLR is 50 basis lower than the base rate. Any further change in the rates will be made only after taking fresh stock of the deposits and it may take two to three months.The government has also decided to remove the spread of 25 bps on select small savings schemes visa-vis G-sec yields of comparable maturities, and introduce a more frequent(quarterly, instead of annual) resetting of the administered interest rates on all small savings schemes effective Q1 of 2016.”Indian Overseas Bank executive director Pawan Kumar Bajaj said, “The market had expected a 25-basis point reduction in rates. As far as reduction of our rates is concerned, we had reviewed the deposits and done the marginal غير مجاز مي باشدt offunds based lending rate (MCLR) calculation very recently.70 per cent.”State Bank of India (SBI) managing director Rajnish Kumar told FC, “The decision on rates will be taken before April 24 in the Alco (asset-liability committee) meeting.While repo rate is the rate at which banks borrow from the RBI, banks cannot extend credit below base rate. There is some scope for base rate reduction. More disappointment came from banks were non-committal on cutting lending rates.”Hopes of loans becoming cheaper have got a boost after the government aligned small interest rate on savings schemes to markets, a demand bankers put forth for better transmission of RBI’s policy rate cuts. Old borrowers can switch to lower rates under MCLR by paying a switching fee. RBI’s comments being dovish, further 25-50 bps reduction can be expected in the current financial year. As per the norms, we will review the MCLR next month and take a decision of the lending rates only after seeing whether the deposit rates have come down or are flat. Administered interest rates on small savings schemes have been marked down by 40-130 bps for Q1 of 2016-17 as compared with those for 2015-16