BANKS MUST MATCH RISING GLOBAL INFLUENCE OF INDIA INC: SUBBARAO

The RBI chief said banks needed to increase their deposit rates and reduce lending rates to accelerate
the savings, investment rate and boost a double-digit growth. This means banks need to raise the interest rates offered to depositors and reduce the lending rates charged on borrowers-in other words, reduce their inter mediation costs, or in technical terminology, reduce the net interest margin (NIM).