State Bank of India slashes EBLR, applying to most floating- rate retail and home loans, by 25 bps; less sharp cut on select FD rates, implying pressure on deposit mobilisation.
Indian Overseas Bank reduces external benchmark lending rate by 25 basis points to 8.10% from 8.35% earlier; MCLR cut by 5 bps.
Despite retail inflation rising to 0.71% in November from a record low of 0.25% a month ago, economists say there is space for another interest rate cut by 25 basis points.
Public sector banks have written off loans worth Rs 6.15 lakh crore in the last five and a half years, MoS for finance Pankaj Chaudhary said.
Bank of Maharashtra reduces interest rates by 25 basis points on a range of retail loans, including home, car and education; others to cut rates are PNB, Bank of India and Indian Bank.
Soon after RBI lowers key repo rate by 25 basis points, state-owned banks like PNB, Indian Bank and Bank of India have cut lending rates, including home loans.
Economists say RBI has room for another repo rate cut; citing rare window of low inflation and strong growth, Governor Sanjay Malhotra says “policy space” exists to support growth.
RBI’s revised estimates come on back of higher-than-anticipated GDP growth of 8.2% in Q2 and lower-than-expected retail inflation print of 0.25% in October; other factors also contributed.
RBI asks banks to submit detailed plan on ringfencing their core business from other riskier non-core business by March 2026.
RBI does not target any specific exchange rate level and relies on market forces to determine the rupee value, says Governor Sanjay Malhotra.
RBI will conduct open-market purchases of bonds worth up to Rs 1 lakh crore and a $5 billion dollar-rupee buy-sell swap this month.
RBI approves appointment of Vikram Sahu as CEO of Bank of America NA in India; he will replace Kaku Nakhate.
RBI’s MPC to weigh rupee factor while taking call on rate cut amid high GDP and record low inflation; analysts say 90 level to a dollar could be new normal.
After allotment of shares, Bank of Maharashtra will be compliant with SEBI’s minimum public shareholding norm; govt’s stake to fall to 73.6% stake after 6% dilution for around Rs 2,492 crore.
RBI says SBI will have to hold an additional common equity tier 1 capital ratio of 0.80%, HDFC Bank 0.40% and ICICI Bank 0.20%.
