 "SBI")
The State Bank of India’s (SBI’s) decision to link its savings deposit rate and pricing of short-term loans to the repo rate is a prudent move because it is expected to enable a quicker transmission of interest rates. For long, successive cuts by the Reserve Bank of India (RBI) of its key policy rate have not been passed on in equal measure to borrowers, and the reason for this is banks have not been in a position to reprice their deposits all at once. So far, banks have been linking interest rates to their own cost of funds.
The country’s largest
