Transmission Woes

IT'S TIME BANKS PASS ON BENEFITS TO MSMEs, AGRICULTURE SECTOR.

- Anand Adhikari

Reserve Bank of India (RBI) Governor Shaktikanta Das has delivered a 75 basis points cut in the repo rate to 5.75 per cent since he joined in December last year. The rate cuts have come on the back of lower-than targeted inflation and need to push economic growth, which fell to 6.8 per cent in 2018/19. But lower interest rates alone won’t improve the sagging fortunes of the economy. The banking sector has been passing through a difficult phase of asset quality deterioration and falling profitabili