Thursday, July 15, 2010

INDIAN BANKING SET TO GET A TRANSPARENT BASE

The Indian banking industry is stepping into an age of probable transparency in lending to customers with the new base rate regime. Top corporate, who currently get the best rates, may bargain for loans at the best rate, or closer to it. But for short-term loans, they will have to tap the commercial paper route or the bond market. For most banks, the migration is unlikely to impact their net interest margin- the difference between the interest earned on deposits and cost of deposits.

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