K.r. Kamath

Earlier in the day, the RBI left interest rates unchanged but said it would roll back recent liquidity tightening measures when stability returns to the currency market, enabling it to resume supporting growth.

State-run lenders in India posted a sharper decline in bad loans than expected in the March quarter, raising investor hopes that the worst is past for a sector hurt by the slowest economic growth in a decade.

Interest rates on retail loans are unlikely to go down despite the Reserve Bank's decision to cut cash reserve ratio today. CRR is the amount of deposits that lenders must keep with the central bank. The RBI cut the cash reserve ratio by 25 basis points (0.25 per cent) to 4.25 per cent freeing up about Rs 17,500 crore into the banking system.

Indian banks will reduce their interest rates if the Reserve Bank of India cuts its key lending rate at its mid-term policy review on October 30, K.R. Kamath, chairman of the Indian Banks' Association, assured the Reserve Bank of India (RBI) Governor Duvvuri Subbarao on Friday.

Earlier in the day, the RBI left interest rates unchanged but said it would roll back recent liquidity tightening measures when stability returns to the currency market, enabling it to resume supporting growth.

State-run lenders in India posted a sharper decline in bad loans than expected in the March quarter, raising investor hopes that the worst is past for a sector hurt by the slowest economic growth in a decade.

Interest rates on retail loans are unlikely to go down despite the Reserve Bank's decision to cut cash reserve ratio today. CRR is the amount of deposits that lenders must keep with the central bank. The RBI cut the cash reserve ratio by 25 basis points (0.25 per cent) to 4.25 per cent freeing up about Rs 17,500 crore into the banking system.

Indian banks will reduce their interest rates if the Reserve Bank of India cuts its key lending rate at its mid-term policy review on October 30, K.R. Kamath, chairman of the Indian Banks' Association, assured the Reserve Bank of India (RBI) Governor Duvvuri Subbarao on Friday.