The Reserve Bank of India (RBI), which has lowered the benchmark rate by 75 basis points so far this year in three installments, is scheduled to hold its next bi-monthly monetary policy meet on September 29.
Shubhada Rao, Senior President and Chief Economist, Yes Bank is expecting rate cut by 25 basis points in the monetary policy review.
The future course of rate cuts will depend on how inflation outlook plays out – like commodity price correcting further and supply side of economics looking up in terms of agriculture, manufacturing and services.
G Gopalakrishna, Director, Centre for Advanced Financial Research and Learning (CAFRAL) says, “The banking sector will experience a substantial change in the nature of competition as two new universal banks – Bandhan Bank and IDFC Bank – start operations, and a number of payment banks and small finance banks are approved this year for licence.”
C S Ghosh, Chairman, CII Economic Affairs, Finance & Taxation Sub-committee & Managing Director & CEO, Bandhan Bank, emphasises on the need for empowering the multitude of rural masses through innovative “banking tools”.
Rear Admiral AK Verma (Retd), Chairman, CII Eastern Region & CMD, GRSE Ltd feels, “The banking and the financial is one of the most important instruments through which a country grows. Fortunately, we have a government which is serious about growth.”