Despite the reduction in repo rate by 50 basis points, the banks have cut MCLR by up to 10 basis points only benefitting the borrowers marginally. Expectations range from 25 basis points to 50 basis points for the next reduction with a mechanism that ensures that the reduction is passed on to the borrowers.
From bad loans to loan defaulters to financial frauds and embezzlement, the Indian banking system seems to be in a crisis mode. And, needless to say, it will have a cascading effect on most sectors – including real estate.
Praveen Gupta has been appointed as Managing Director & CEO of SBI Capital Markets Ltd (the Merchant Banking arm of State Bank of India) as on June 22, 2015. Prior to this, he was the Deputy Managing Director and CFO of SBI.