EMIs fall as govt-run banks pass on rate-cut benefits

Pvt sector peers cautious of margins, taking more calculated approach

- BENN KOCHUVEEDAN @ Mumbai

MANY large public sector banks such as Bank of Baroda, Punjab National Bank, Bank of India, and Uco Bank have reduced their repo-linked lending rates by 50 bps for their existing borrowers in response to the Reserve Bank's unconventional 50 bps reduction in the repo rate to 5.5% last Friday.

The RBI also slashed the cash reserve ratio (CRR) by 100 bps to 3% in a staggered manner between September and end-November, which will help them protect their margins which have been under pressure since long due to higher pricing of deposits.