However, the banking fraternity remains silent on the question of any concessions on t
he lending rate front and not without reason. A senior official at Oriental Bank of Commerce categorically points out that, “In the upcoming season, our bank will only promote its existing schemes to encash on the festive sentiments and there is no scope of any concessions for consumers availing of loans.” PSBs are reeling under shrinking margins (as PSBs’ move to align lending rates to borrowing costs was opposed by Finance Ministry) & sadly, there is little room for gain. Truly, the era of cheap money is over & borrowers will have to dig deeper into their wallets. Wannabe borrowers possibly could wait for the festival season, for they might get ‘some’ relief, but that could prove equally fatal, if RBI further tightens its noose around banks in late October. There’s just this lingering suspicion with us that this current interest rate eclipse does not seem to be going away anywhere... not to soon...?
For Complete IIPM Article, Click on IIPM Article
he lending rate front and not without reason. A senior official at Oriental Bank of Commerce categorically points out that, “In the upcoming season, our bank will only promote its existing schemes to encash on the festive sentiments and there is no scope of any concessions for consumers availing of loans.” PSBs are reeling under shrinking margins (as PSBs’ move to align lending rates to borrowing costs was opposed by Finance Ministry) & sadly, there is little room for gain. Truly, the era of cheap money is over & borrowers will have to dig deeper into their wallets. Wannabe borrowers possibly could wait for the festival season, for they might get ‘some’ relief, but that could prove equally fatal, if RBI further tightens its noose around banks in late October. There’s just this lingering suspicion with us that this current interest rate eclipse does not seem to be going away anywhere... not to soon...?For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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