BANKS RATE HIKE KEPT IN ABEYANCE

As per the Finance Ministry direction, Banks have rushed to call board meets to keep in abeyance Prime Lending Rate (PLR) hike and the effect of the same will be in following form: -

• New loan contracts are not to be signed till boards meet.
• No new deposit rate hike over next few days.
• Deposit rate hike to be rolled back if PLR hike does not go through.
• Banks planning to hike PLR develop cold feet.
• Govt nominees may push for roll-back of PLR at board meets, in the case where PLR increase was already announced.