Reacting to the RBI’s rate cut, Syndicate Bank MD and CEO, Mrutyunjay Mahapatra, said: “The banking sector, which has moved from MCLR to an external benchmark loan rate, will pass on the 25 bps reduction to the ultimate consumers faster than in the past.”
Combined with fiscal stimulus such as tax rate cuts and investment incentivisation, the sentiments and overall economic outlook is expected to be much better. “The reiteration of the health of the financial system, and the isolation of the recent events, will go a long way for consumer confidence building,” he said.