Lending rate cuts may happen in early April: Federal Bank

Even as the Reserve Bank of India has cut rates twice this year, banks have appeared to be extremely unwilling to cut lending rates, despite prodding by both the central bank and the government.

In an interview with CNBC-TV18, Shyam Shrinivasan, MD and CEO, Federal Bank, said lending rate cuts may happen in early April.

“Deposit rates have to come down first and credit demand has to improve [before lending rates can come off],” he said, adding that cost of funds has “not reduced dramatically yet”.