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RBI’s external benchmark move: All but a few link retail loan to repo rate

All public sector banks, and major private sector banks, have chosen repo rate as their external benchmark for pricing retail loans, except for those who are not focused on home loans. For example, IndusInd Bank management said on Thursday that the bank has linked their floating rate retail portfolio of about Rs 10,000 crore to 6-months certificates of deposits (CD) rates. According to the Reserve Bank of India rules, banks can choose between repo, treasury rates, or any benchmark set by Financial Benchmark India Private Ltd (FBIL) for the rate setting purpose. IndusInd has chosen …

Source: Business Standard