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For bankers delayed monetary policy only adds to their long list of woes

The Reserve Bank of India's decision to reschedule this week's interest-rate meeting makes it difficult for lenders to price loans and deposits

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The RBI on Monday abruptly postponed its policy announcement, without giving a reason.

3 min read Last Updated : Sep 30 2020 | 11:08 AM IST

India’s delayed monetary policy meeting adds to growing uncertainty for bankers over how to bolster lending and handle record levels of bad debt.

The Reserve Bank of India’s decision to reschedule this week’s interest-rate meeting makes it difficult for lenders to price loans and deposits because they usually track the monetary policy’s outlook for liquidity and interest rates. Banks monitor the regulator’s projections for economic growth, which is closely linked to credit demand.

Lenders usually make these decisions at monthly asset-liability meetings, planned for shortly after the RBI’s monetary policy statement, according to bankers with knowledge of the meetings who asked not

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