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Lower Savings Account Interest Rates to Bring Lending Rates Down
August 16, 2017
As leading lenders are slashing the interest rates on the savings accounts deposits one by one, India Ratings believe that this could result in lower lending rates as well. According to the analytics agency, as profitability remains to be a problem for the lenders due to low credit demand and sizeable non-performing assets, it’s likely that the cash-rich lenders will go for increasing their credit market shares.
India’s largest public sector lender State Bank of India was the first to start the trend of cutting savings account interest rates for deposits under Rs. 1 core by 0.50%. It was soon followed by Bank of Baroda and Axis Bank.
