The Hindu Business Line : ‘A signal to banks to lower prime lending rates’

Knitwear garment exporters in Tirupur say the RBI’s measure at cutting the repo and reverse repo rate by 25 bps is a signal to the banks for lowering their prime lending rates.

‘These are growth stimulus measures. The banks should effect an immediate cut in their PLR,’ Mr A. Sakthivel, President, Tirupur Exporters’ Association (TEA) said.

The association has been appealing for a reduction in the rate to seven per cent for the export sector.

‘It is one of our long pending demands. We have been seeking a level playing field in the global market. It has become essential particularly in a crisis ridden situation,’ Mr Sakthivel said.

‘The RBI’s report on Macro Economic and Monetary Developments in 2008-09 shows that all industries except textiles would remain positive in the April-June 2009 quarter.

Banks should, therefore, extend all support for uplifting the sagging textile economy without further delay. The business proposition of the knitwear garment sector would otherwise be doomed,’ he added.

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‘A signal to banks to lower prime lending rates’