Author: curagator

rewrite this content and keep HTML tags A large portion of housing and other loans are by now linked to the RBI repo rate. Therefore, changes in repo rates have a significant impact on the loan income of banks. Higher the repo rate, better will be the profitability of banks. Since RBI did not reduce the repo rate, high profitability of banks was preserved.Additionally, the half-percentage cut in CRR will generate additional interest income of about Rs 7,000 crore on deployment of investments yielding minimum returns as the RBI does not pay any interest on CRR deposits.Following the Bimal Jalan…

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