State Bank of India chairman Pratip Chaudhuri said the repo rate cut and CRR reduction will lead to Rs 300 crore relief for SBI. SBI's Asset Liability Committee will meet on Wednesday, where the possibility of a rate cut would be deliberated. SBI managing director A Krishna Kumar said "a rate cut is likely. Rates on advances and deposits could come down simultaneously".
ICICI Bank managing director Chanda Kochhar said lending rate cuts are more likely than deposit rate cuts.
HDFC Bank managing director Aditya Puri said the repo and CRR cut will lead to cost reductions of around Rs 70 crore. There will be monetary transmission given the repo & CRR cut, he added.
Axis Bank: Liquidity action will determine banks' decisions on rates rather than repo rate cut, the private lender said, adding that monetary transmission is likely to happen.
Punjab National Bank CMD KR Kamath said there is a case for transmission of RBI rate cuts. Policy rate cut and CRR cut together will help reduce cost of funds, he added.
Indian Overseas Bank executive director A K Bansal said the RBI's action will result in moderation of interest rates in the coming days. Both lending and deposit rates are expected to see a downward revision which will improve growth prospects, he said.
Canara Bank executive director A K Gupta said the bank would consider interest rate cut in the light of RBI policy action.
Capital First chairman and managing director V Vaidyanathan said there is no doubt that rates will come down. Banks are now offering home loans at base rate. They are not lending below base rate because they are not permitted to do so, but in a day or two, banks may reduce rates by at least 25 basis points, he added.
Bank of Baroda chief economist Rupa Rege Nitsure said the monetary policy is supportive of growth. This is substantial easing of 50 basis points, the repo and the CRR together. There is definitely scope for lending rates to come down, she added.
HDFC vice chairman and managing director Keki Mistry said as costs come down, the mortgage lender will lower rates.
Borrowers could see better days ahead after the Reserve Bank lowered its key policy rate for the first time in nine months on Tuesday. The central bank also unexpectedly reduced the Cash Reserve Ration, a move that will inject Rs 18,000 crore into the banking system. Most bankers said they will past the benefits of cheaper funds to end users.